Based on the 1997 Crisis and your own experience, what are the main weaknesses of the East Asian economies?
What will be an ideal response?
The textbook raised mainly three issues. The first weakness is little productivity increase, most of the growth due to capital and labor inputs increase, eventually leading to diminishing returns. The second weakness is the poor state of banking regulation in most of the Asian economies. The third reason is inadequate legal framework for dealing with companies in trouble.
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Refer to Table 5.1. Hector has a comparative advantage in the production of
A) bracelets. B) tiaras. C) both products. D) neither product.
If a country is importing more than they are exporting, the current account will have a ________ balance and the capital and financial account will have a ________ balance
A) negative; positive B) negative; negative C) positive; negative D) positive; positive
The interest rate is 5 percent. How does $500 to be received a year from today compare in value to $500 right now?
What will be an ideal response?
An engineer with a major power company decides to leave his job because he believes he has found a way to deliver Internet service across the electrical grid and he wants to start up his own business. He doesn't have very much cash or collateral
Which method of financing do you believe he will most likely use and why?