Question: Please answer all parts thank you Question 4: This question has three parts. Your answer should not be of more than 200 words for each

 Please answer all parts thank you Question 4: This question has

Please answer all parts thank you

Question 4: This question has three parts. Your answer should not be of more than 200 words for each part. Part A What is the basic reason for the existence of the Eurodollar market? From your perspective, what factors have accounted for its growth over time? Part B On October 14, 1993, Portugal's Ministry of Finance announced that it would scrap the 20 percent withholding tax imposed on the interest payments due to foreigners holding government bonds. At present, foreigners whose governments have a double-taxation treaty with Portugal wait up to two years to claim back a portion of the tax. What might have been Portugal's motivations for scrapping the tax? What are the likely consequences of eliminating the withholding tax? Part C While doing international business some countries have comparative advantage and some have absolute advantage, what do you understand by each of these advantages? Do you think there can be a scenario where one country can have absolute advantage, and another can have relative example? Give an example of your understanding in this regard. Question 4: This question has three parts. Your answer should not be of more than 200 words for each part. Part A What is the basic reason for the existence of the Eurodollar market? From your perspective, what factors have accounted for its growth over time? Part B On October 14, 1993, Portugal's Ministry of Finance announced that it would scrap the 20 percent withholding tax imposed on the interest payments due to foreigners holding government bonds. At present, foreigners whose governments have a double-taxation treaty with Portugal wait up to two years to claim back a portion of the tax. What might have been Portugal's motivations for scrapping the tax? What are the likely consequences of eliminating the withholding tax? Part C While doing international business some countries have comparative advantage and some have absolute advantage, what do you understand by each of these advantages? Do you think there can be a scenario where one country can have absolute advantage, and another can have relative example? Give an example of your understanding in this regard

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