What factors determine a country’s terms of trade?
Answer to relevant QuestionsWhen you made the decision to study economics, was it a ‘rational’ decision (albeit based on the limited information you had available at the time)? What additional information would you like to have had in order to ...Go through each of the arguments for restricting trade (both those of general validity and those having some validity for specific countries) and provide a counterargument for not restricting trade.Compare the relative effectiveness of fiscal and monetary policy under (a) fixed; (b) free-floating exchange rates. How is the effectiveness influenced by the elasticity of supply of international finance?Assume that countries in the Eurozone decide to pursue a deflationary fiscal policy. What effect is this likely to have on the UK economy?If a developing country has a comparative advantage in primary products, should the government allow market forces to dictate the pattern of trade?
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