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Author Question: Suppose that trade in asset is not allowed but the two countries sign a treaty that guarantee the ... (Read 65 times)

james9437

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on: Jun 30, 2018
Suppose that trade in asset is not allowed but the two countries sign a treaty that guarantee the sending of 25 tons of kiwi in good time by the high output country in that season. What will the outcome of such a treaty? Explain why.
 
  What will be an ideal response?

Question 2

Countries that trade a small amount with a single foreign country tend to float their exchange rate to the foreign country's currency.
 
  Indicate whether the statement is true or false


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smrtceo

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Reply #1 on: Jun 30, 2018
Answer to Question 1

The outcomes will be exactly the same as in Case D above. In other words, rather than signing a treaty, just leaving the financial markets to function will lead us to the desirable results.

Answer to Question 2

TRUE


james9437

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Reply 2 on: Jun 30, 2018
Gracias!

ecabral0

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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