السلام عليكم... ساعدوني في حل واحد او اثنين من هذه الاسئلة .. ولكم جزيل الشكر و الامتنان
تحياتي
Will the GCC custom union result in trade diversion or trade creation? Should the GCC continue its' derive toward monetary union and economic integration? Why or why not?
How does Bahrain's peg to the US dollar work in practice? Explain by using diagrams for "pegged" exchange rates similar to those in the text book. What are the strengths and weaknesses of a peg? Should Bahrain keep this system? Why or why not? If not, what is the alternative?
If it has been decided that protection is to be given to an industry, industrialists usually prefer Quotas while economic advisers to governments argue for subsidy or tariff. Why might there be a difference of opinion between these two groups?
Did the concept of comparative advantage strengthen or worsen the case against Mercantilist trade doctrine? Why? Is it possible for trade to take place in the Classical world of David Ricardo without complete specialization of production in both countries? Who will receive the most gains from trade in this instance? Why? Explain using numerical example how trade between two countries benefits each of them in comparison with autarky. When would either of the two countries NOT benefit from engaging in trade? Explain.
Direct investment inflows by foreigners into Bahrain have been sizable in recent years. How might this net inward movement of capital affect the level and pattern of Bahrain trade and economic activity? How does it affect the source country and the world as a whole? Because real investment by foreigners expands a country’s capital stock and hence presumably its output and income, why should any country consider restricting foreign investment?
What is meant by "relative factor intensity of a good" and "relative factor abundance of a country"? How are these concepts used to explain the commodity composition of trade? Does it explain all types of trade? If not, how can you explain types of trade that are not explained by these concepts. Show that under this analysis commodity movement and factor movement are substitutes for each other.
