Which of the following strategies being considered by Kant is most likely to undermine or delay convergence
Question:
Which of the following strategies being considered by Kanté is most likely to undermine or delay convergence with developed economies?
A. Strategy 2 B. Strategy 4 C. Strategy 5
Transcribed Image Text:
At a recent international finance and economics conference in Bamako, Mali, Jose Amaral of Brazil and Lucinda Mantri of India are discussing how to spur their countries' economic growth. Amaral believes that growth can be bolstered by removing institutional impediments, and suggests several possibilities for Brazil: launching a rural literacy program, clarifying property rights laws, and implementing a new dividend tax on foreign investors. Mantri responds that, for India, capital deepening will be more effective, and has proposed the following ideas: building a group of auto and textile factories in the southern states, developing a north-south and east-west highway network, and sponsoring a patent initiative. In response, Amaral says to Mantri: "Based on endogenous growth theory, one of those proposals is more likely to raise total factor productivity than result in pure capital deepening." While Mantri recognizes that India lacks the significant natural resources of Brazil, she states that India can overcome this challenge by bolstering long-term growth through three channels: Channel 1: Deepening the capital base. Channel 2: Making investments in technology. Channel 3: Maintaining a low rupee exchange rate. Each country's basic economic statistics were presented at the conference. Selected data for Brazil and India are shown in Exhibit D. Adama Kant, a fund manager based in Mali, is planning to increase the fund's allocation to international equities, and, after some preliminary analysis, has determined that the new allocation will be to Brazilian or Indian equities. After reviewing the data in Exhibit D, Kant decides that the allocation will be to Indian equities. EXHIBIT D Economic Statistics, Brazil and India Economic Statistic GDP per capita, 2010 GDP per capita growth, 1990-2010 GDP growth, 2005-2008 Growth due to labor productivity component Growth due to capital deepening component Brazil India $9,589 $3,575 1.62% 4.84% 4.9% 8.2% 2.9% 6.0% 3.4% 3.6% Kant is concerned about the low standard of living in Mali. To improve per capita GDP, Kant is considering five specific strategies: Strategy 1: Lower the country's tax rate. Strategy 2: Introduce policies that encourage the return of highly educated Malian emigrants. Strategy 3: Build day care centers to permit greater participation of women in the workforce. Strategy 4: Impose high tariffs on imports to protect the country's nascent industries. Strategy 5: Use economic development bank loans to improve the country's transport and manufacturing infrastructure.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (QA)
Answered By
Nazrin Ziad
I am a post graduate in Zoology with specialization in Entomology.I also have a Bachelor degree in Education.I posess more than 10 years of teaching as well as tutoring experience.I have done a project on histopathological analysis on alcohol treated liver of Albino Mice.
I can deal with every field under Biology from basic to advanced level.I can also guide you for your project works related to biological subjects other than tutoring.You can also seek my help for cracking competitive exams with biology as one of the subjects.
3.30+
2+ Reviews
10+ Question Solved
Related Book For
Economics For Investment Decision Makers
ISBN: 9781118111963
1st Edition
Authors: Sandeep Singh, Christopher D Piros, Jerald E Pinto
Question Posted:
Students also viewed these Business questions
-
KYC's stock price can go up by 15 percent every year, or down by 10 percent. Both outcomes are equally likely. The risk free rate is 5 percent, and the current stock price of KYC is 100. (a) Price a...
-
CANMNMM January of this year. (a) Each item will be held in a record. Describe all the data structures that must refer to these records to implement the required functionality. Describe all the...
-
1) ________ is increasingly being recognized as a major determinant of success or failure in international business. A) International human resource management B) Procurement of raw materials from...
-
Prepare a statement of cash flows in proper form using the inflows and outflows from questions 4-15. Assume net income (earnings after taxes) from the 2018 income statement was $10,628, and $5,000 in...
-
What is the speed of a particle when its kinetic energy equals its rest energy? Does the mass of the particle affect the result?
-
Solar panels are often used on spacecraft to provide power. Calculate the amount of power generated by the solar panels near Earth, Mars, and Saturn. Also calculate the temperature of the spacecraft...
-
What requirements does SAS No. 65, "The Auditor's Consideration of the Internal Audit Function in an Audit of Financial Statements" impose upon independent auditors regarding internal auditors?
-
A Kirk Limited is trying to determine the value of its ending inventory as of February 28, 2012, the companys year-end. The accountant counted everything that was in the warehouse, as of February 28,...
-
According to Newton's Second Law F = ma. If the force applied to an object is doubled, what happens to the acceleration? If the force applied to an object is doubled, then the acceleration also...
-
The most appropriate classification of the Dodd-Frank Act, referred to in Statement 1, is a(n): A. statute. B. judicial law. C. administrative law. Tiu Asset Management (TAM) recently hired Jonna...
-
The strategy that is least likely to improve per capita GDP in Mali is: A. Strategy 1. B. Strategy 2. C. Strategy 3. At a recent international finance and economics conference in Bamako, Mali, Jose...
-
Although Zhang Juanjuan won the gold medal in 2008, she did not perform extraordinarily well in the seeding round. How consistent are archers? The seeding round for the women is reported in two...
-
Consider a directed graph described by the following weighted matrix: W= a. Draw this graph. b. Find the distance matrix using Floyd's algorithm. -0 3 00 - 8 0 00 00 00 8 Loo 00 80 1 8 m 8 3 1 8 1...
-
6. Consider a two-layer neural network as shown in Fig. Q6 with ReLU activation functions in the hidden layer and the output layer. The initial weights, biases and training inputs/outputs for a...
-
The plan is to search the whole record of all rainfall data for a particular station's data, and then present this data on the client screen. This search should be done in a thread. Consider the...
-
Create a Dependency Diagram for the database. For each Determinant give the business rule(s) that created the dependency.
-
Consider SC(X), the safe configuration space for two robots on the space X shown on the right in Figure 6.36. (a) Sketch a representation of SC(X), showing how it can be constructed by gluing...
-
Use this text and the U.S. Department of Justice website (www.usdoj.gov/crt/ada/) to identify what is reasonable accommodation and how it is determined.
-
Calculate Total Contribution Margin for the same items. Total Revenue Total Variable Costs Total Contribution Margin $50.00 a. $116.00 $329.70 b. $275.00 $14,796.00 $7,440.00 c. $40,931.25 d....
-
Complete the table directly below by calculating marginal product and average product. Plot the total, marginal, and average products and explain in detail the relationship between each pair of...
-
Why can the distinction between fixed costs and variable costs be made in the short run? Classify the following as fixed or variable costs: advertising expenditures, fuel, interest on company-issued...
-
A firm has fixed costs of $60 and variable costs as indicated in the table at the bottom of this page. Complete the table and check your calculations by referring to question 4 at the end of Chapter....
-
Prove the following by proof by cases: min(a, min(b, c)) = min(min(a, b), c) for real numbers a, b, c
-
There are two possible states of the world C and D. With probability 0.1 state C occurs. Without insurance, the buyer has $6000 in state C and $6000 in state D. His value of money in state C is u(x)...
-
In a large corporate computer network, user log-ons to the system can be modeled as a Poisson process with a mean of 25 log-ons per hour. (a) List probably density function. (b) Derive the...
Study smarter with the SolutionInn App