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alekssr [168]
3 years ago
5

There are arguments for and against the alternative exchange rate regimes. a) List the advantages of the flexible exchange rate

regime. b) Criticize the flexible exchange rate regime from the viewpoint of the proponents of the fixed exchange rate regime. c) Rebut the above criticism from the viewpoint of the proponents of the flexible exchange rate regime.
Business
1 answer:
atroni [7]3 years ago
8 0

Answer:

a. The advantages of the flexible exchange rate system include: (I) provides insulation against unemployment problem in other countries and (ii) promotes economic development and helps to achieve full employment in the country, iii) automatically corrects the disequilibrium in the balance of payments.

b. If exchange rates are fluctuating randomly, that may discourage international trade and encourage market segmentation, they are very volatile

c. Economic agents can hedge exchange risk by means of forward contracts and other techniques. In addition, under a fixed exchange rate regime, governments often restrict international trade in order to maintain the exchange rate.

Explanation:

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nata0808 [166]
They would opt to have a sale of bathing suits. They would offer discount from the original price of the bathing suit. In this way, the suits will be bought because its cheaper than before. 

The store manager should make sure that the discounted price is still higher than the cost of the bathing suits so that they will still generate profit even at a lower value than initially expected.
6 0
2 years ago
Is a stackelberg solution a Nash (stable) equilibrium? Explain. 2. Does the solution change if stackelberg game is considered in
e-lub [12.9K]

The Stackelberg solution can be used to find the perfect or stable Nash equilibrium or equilibria.

<h3>What is this equilibrium about?</h3>

Other answers:

Based on the above, Note that the strategy profile is one where one serves best each player, and based on the strategies of the other player and it covers the fact that all player playing in a Nash equilibrium must be in every subgame.

Note also that The Stackelberg leadership model is said to be a kind off strategic game  that is played in economics where the leader firm is known to moves first and then the follower firms is said to then move in a sequential manner and I think, the solution do not change if stackelberg game is considered in the long run.

I believe that the stackelberg leader will not collude with the stackelberg follower but in a lot of cases, there may be a collusion.

Yes, a Stackelberg leader can be more likely or less likely to merge with the follower firm as a merger can be profitable to them.

Learn more about equilibrium from

brainly.com/question/517289

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8 0
2 years ago
Which of the following occupations would least likely to be
Alekssandra [29.7K]

Answer:

McDonald Clown

Explanation:

B.

=MCDONALD

3 0
3 years ago
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The ______________ stage of the selling process offers a prime opportunity for salespeople to solidify customer relationships th
Nitella [24]

Answer:

E. Follow-up

Explanation:

The follow-up stage is a stage of the selling process which offers a prime opportunity for salespeople to solidify customer relationships through great service quality.

Follow-up means things that can be done by the salesperson in order to Improve customer relation.

Follow-up services helps to:

1. Increase sales: Customers who are satisfied with your services are more likely to come back and patronise you more.

2. Follow-up services helps producers to innovate on their products. Follow-up service includes listening to customers complaint and needs. This allows a producer to Improve on its product.

3. Follow-up services helps a business to stand out among other businesses because only few business follow-up

on their customers.

4. Existing customers refer new customers to patronise you and customers develop a sense of trust in your product and services.

5. Follow-up services helps to increase profit because firms make more sales.

7 0
3 years ago
Read 2 more answers
If the government wants to increase production of a good to achieve marginal social benefit, then the following policy will most
Kobotan [32]

Answer:

a. a subsidy so that the firm can operate where marginal social benefit equals marginal social cost.

Explanation:

The private company is producing when the marginal revenue matches the marginal cost. The governemtn will want to decrease the cost (that's by subsidize the activity) to match the marginal revenue considering the positive externalities.

The government will do a pigouvian subsidy.

The government reasons to go for this is that the good or services provide positive externalities Which are enjoy by people who doens't purchase the good. Thus, this subsidy will increase the amount of ooutput thus, generating a better social benefit.

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