Answer to Question #14287 in Macroeconomics for Nita

Question

1. Flexible and floating exchange rates offer an effective international
monetary arrangement. Discuss.
2. Why would Namibia export clothing to China, and also import clothing
from China? <why do countries trade in the same types of goods? –
intra-industry trade>
3. What is the effect of high inflation on the national currency?
4. What is exchange rate purchasing power parity? Why is it useful?

Answer 1

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