52. Historically, the Japanese government saw as a substitute for exporting and

Question

52. Historically, the Japanese government saw as a substitute for exporting and thus as a way of reducing Japan's politically embarrassing balance of payments surphas A) foreign direct investment B) franchising C) licensing and VER D) VER's 53. Even if American wage growth is increasing, American consumers can reduce domestic aggregate demand by purchasing foreign made goods, thereby increasing the negative coefficient of A) Y B) C C) I D) G E) NX 54. If the prices differed in London and New York and a dealer spent S1 million to purchase ¥ 125 million, then sold that ¥ 125 million inmediately for S1046666 million, the trader would earn a profit of $46,666 on the transaction. This is accomplished through A) arbitrage. B) hedging in the futures market C) FDI D) pre exchange agreements. 5S. Historically, one important determinant of a government's policy toward FDI has been its: A) political ideology B) sociocultural ideology C) legal ideology D) economic ideology 56. The aggregate demand function of the U.S. reveals that play(s) a critical role in GDP explaining up to two thirds of all demand, which is why a rise in ""of (i-0) will cause A) net exports, Y to rise B) consumption by consumers, GDP to fall C) net imports, NX to rise D) investment and savings, I to rise offsetting an increase in"t E) both A and D are correct 57. The_is the rate at which the market converts one currency into another. A) international conversion factor B) foreign exchange rate C) world barter factor D) global replacement percentage 58. Which of the following statements is true? A) B) C) The existence of the foreign exchange market has removed all forms of foreign exchange risk for business organizations. Despite the existence of the foreign exchange market, firms do suffer losses because of unpredicted changes in exchange rates, although these occasions are rare. The foreign exchange market eliminates very little foreign exchange risk. Despite the existence of the foreign exchange market, it is not unusual for international businesses to suffer losses because of unpredicted changes in exchange rates. D)

Explanation / Answer

Question 52 the correct answer is option d.

Japanese Government and the government of United States had voluntary agreed to restrict the export of manufacturing goods and automobiles from Japan in the 1970 using VER.

QUESTION 53 THE CORRECT OPTION IS OPTION E

Because American consumers are reducing the domestic aggregate demand by increasing the purchase of more foreign made goods they are increasing the coefficient of net Exports

Question 54 the correct answer is option A

Arbitrageurs the opportunity of earning profit when there are two different prices for a particular product and there is a different exchange rate involved in between the two currencies.

Question 55 the correct answer to this question is option B

Most of the Nations have been sceptical about the incoming foreign direct investment and its influence in the domestic economy and its cultural structure.

Question 56 the correct answer is option B

Consumption has been one of the most important ingredient of GDP and perhaps the largest component because it provides major source of Expenditure

Question 57 the correct answer is option B

Exchange rate is the rate of conversion of one currency into other or the price of one currency into other currency

Question 58 the correct option is option B

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