Which rate of exchange take in case of o line export?
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This study examines the effect of the Malaysian dollar (ringgit) real exchange rate on the export demand for Malaysian primary commodities under alternative specifications and estimation procedures. The results suggest that the ordinary least squares estimates are inferior compared to the seemingly unrelated regression results. The price and exchange rate elasticities were found to be inelastic implying that the increase in the export demand due to ringgit depreciation may not be large enough to improve the balance of trade.
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here is your answer :-
This study examines the effect of the Malaysian dollar (ringgit) real exchange rate on the export demand for Malaysian primary commodities under alternative specifications and estimation procedures. The results suggest that the ordinary least squares estimates are inferior compared to the seemingly unrelated regression results. The price and exchange rate elasticities were found to be inelastic implying that the increase in the export demand due to ringgit depreciation may not be large enough to improve the balance of trade.
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heya answer is here......
♧The special features in services trade clearly distinguish it from goods trade. Services trade
cannot be treated separately from its production and it must have been delivered or consumed by
the time it is produced. As coproduction by the consumer of importing country and producer of
exporting country is a necessary condition for most of services trade, the quality and quantity of
labour and infrastructures involved in services trade are most important determining factors.
3
Poor quality and quantity of labour and infrastructures in either of the trading partner countries
can be deterrent to services trade (Mirza and Nicoletti, 2004).
4 This simultaneity in production
and consumption is not a necessary condition for goods to be traded and production factors in
one country can always substitute the production factors of another country in goods trade.
5 As
tasks accomplished in both partner countries interact in production and exchanges, costly
institutions or regulations in either country can also increase the prices of traded services and
diminish the bilateral trade (Mirza and Nicoletti, 2004).
6
Trade in general, whether in services or goods, although to some degree is determined by factor
endowments and comparative advantages,
♧The special features in services trade clearly distinguish it from goods trade. Services trade
cannot be treated separately from its production and it must have been delivered or consumed by
the time it is produced. As coproduction by the consumer of importing country and producer of
exporting country is a necessary condition for most of services trade, the quality and quantity of
labour and infrastructures involved in services trade are most important determining factors.
3
Poor quality and quantity of labour and infrastructures in either of the trading partner countries
can be deterrent to services trade (Mirza and Nicoletti, 2004).
4 This simultaneity in production
and consumption is not a necessary condition for goods to be traded and production factors in
one country can always substitute the production factors of another country in goods trade.
5 As
tasks accomplished in both partner countries interact in production and exchanges, costly
institutions or regulations in either country can also increase the prices of traded services and
diminish the bilateral trade (Mirza and Nicoletti, 2004).
6
Trade in general, whether in services or goods, although to some degree is determined by factor
endowments and comparative advantages,
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