True or false and explain why (8) A forward exchange rate contract allows invest

Question

True or false and explain why

(8) A forward exchange rate contract allows investors to speculate and take advantage of exchange rate fluctuations.

(9) Most of the trade between the US and Canada (and among many developed economies pairs) is inter-industry trade rather than intra-industry trade.

(10) If a firm exhibits economies of scale in production that means that it is better fitted to produce for small markets.

(11) In his US-Canada Free Trade Agreement study, Trefler finds that, while theoretically appealing, there was no evidence of the monopolistic competition model gains from trade when Canada liberalized its trade with the US.

(12) The European Central Bank follows the Anglo-French model of a central bank since that was the prevailing model in the majority of the countries that started the European Monetary Union.

Explanation / Answer

8)True

9)True

10)False

11)False

12) true

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