Author Question: Describe the role of offshore banking and of offshore currency (eurocurrencies) trading What will ... (Read 35 times)

ENagel

  • Hero Member
  • *****
  • Posts: 540
Describe the role of offshore banking and of offshore currency (eurocurrencies) trading
 
  What will be an ideal response?

Question 2

Why is the H.O. model called the factor-proportions theory?
 
  What will be an ideal response?



juicepod

  • Sr. Member
  • ****
  • Posts: 310
Answer to Question 1

Both have mushroomed due to increased international trade, increased multinational corporations and globalization. Students should also emphasize banks' desire to escape domestic government regulations and taxes on financial activities and political concerns from holding deposits in the country that issued them, which increases default concerns on the part of the foreign investors, etc.

Answer to Question 2

The H.O. model explores the nature and the limitations of assuming that the sole determinant of comparative advantage is inter-country differences in (relative) factor proportions.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

The human body's pharmacokinetics are quite varied. Our hair holds onto drugs longer than our urine, blood, or saliva. For example, alcohol can be detected in the hair for up to 90 days after it was consumed. The same is true for marijuana, cocaine, ecstasy, heroin, methamphetamine, and nicotine.

Did you know?

Elderly adults are at greatest risk of stroke and myocardial infarction and have the most to gain from prophylaxis. Patients ages 60 to 80 years with blood pressures above 160/90 mm Hg should benefit from antihypertensive treatment.

Did you know?

There are 60,000 miles of blood vessels in every adult human.

Did you know?

Atropine was named after the Greek goddess Atropos, the oldest and ugliest of the three sisters known as the Fates, who controlled the destiny of men.

Did you know?

The longest a person has survived after a heart transplant is 24 years.

For a complete list of videos, visit our video library