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    The biggest confusion i have is how integration even relates to free trade/trade liberalization? if some1 could explains this to me, i will rest in peace
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    (Original post by Elponchis_LOL)
    what he means is , its fixed within other EU members (obviously) but floating against other countries. But majority of EU trade is within itself due to trade creation and diversion so its basicly 'fixed'
    (Original post by Hits1)
    Im getting fairly confused, it is Floating my bad jus researched it. Although why does the extract say part of thier decline in competitiveness stems from these economies having a 'fixed' exchange rate against other members of the euro area... whattt lol confused..
    yeah I just read the extract he was on about...it says 'fixed against other member countries'

    The Euro iteself is a floating currency

    but the members cannot cause appreciation/depreciation in exchange rates against each other as they share the same currency
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    (Original post by Hits1)
    Im getting fairly confused, it is Floating my bad jus researched it. Although why does the extract say part of thier decline in competitiveness stems from these economies having a 'fixed' exchange rate against other members of the euro area... whattt lol confused..
    It's only fixed against other members of the eurozone but not against other currencies such as the dollar.
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    so shell i just keep going over
    Fiscal policie
    Exchange rate
    Trade/protectionism
    Flexible labour markets

    is that it really?
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    (Original post by viksta1000)
    yeah I just read the extract he was on about...it says 'fixed against other member countries'

    The Euro iteself is a floating currency

    but the members cannot cause appreciation/depreciation in exchange rates against each other as they share the same currency
    cheers buddy! Seriously this was also confusing me for some time and at least not going into the exam confused! thanks!
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    tutor 2 u says its fixed???

    Since autumn 1992, Britain has adopted a floating exchange rate system. The Bank of England does not actively intervene in the currency markets to achieve a desired exchange rate level.

    In contrast, the twelve members of the Single Currency agreed to fully fix their currencies against each other in January 1999. In January 2002, twelve exchange rates become one when the Euro enters common circulation throughout the Euro Zone.
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    key words is 'against each other' to the above, against non-eu members its floating
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    (Original post by mqt)
    Thanks! Lol...That wouldv'e been another question i'd ask but you hit two birds with one stone ! thanks!
    Hey I made a slight mistake, and the posts on the most recent page show why...

    basically the euro is 'fixed' against other members within the EU as they share the same currency hence it cannot appreciate/depreciate

    Whereas it is floating against other currencies such as the pound, dollar and so on!

    Sorry about that, confused myself also!
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    (Original post by viksta1000)
    yeah I just read the extract he was on about...it says 'fixed against other member countries'

    The Euro iteself is a floating currency

    but the members cannot cause appreciation/depreciation in exchange rates against each other as they share the same currency
    So the decline in the competitiveness of the PIIGS was due to the 'fixed' exchange rate against other members ?
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    (Original post by Tickles)
    tutor 2 u says its fixed???

    Since autumn 1992, Britain has adopted a floating exchange rate system. The Bank of England does not actively intervene in the currency markets to achieve a desired exchange rate level.

    In contrast, the twelve members of the Single Currency agreed to fully fix their currencies against each other in January 1999. In January 2002, twelve exchange rates become one when the Euro enters common circulation throughout the Euro Zone.
    It says against each other not against other currencies.
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    (Original post by Tariq_3458)
    So the decline in the competitiveness of the PIIGS was due to the 'fixed' exchange rate against other members ?
    yeh, and if spain wanted to devalue the exchange rate (and was allowed to, hypethetically). It wont have any effects at all on trade because it effects everyone equal so everything remains the same
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    can anybody give me proper evaluation points for trade? not just a balanced arguement evaluation, this only allows you to gain 15 marks
    The other 5 marks is what i need
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    (Original post by ajayhp)
    The biggest confusion i have is how integration even relates to free trade/trade liberalization? if some1 could explains this to me, i will rest in peace
    I take it my explanation didn't help --> http://www.thestudentroom.co.uk/show...&postcount=552

    I'll try again


    Basically, integration basically opens up the 'doors' to allow countries to trade, it cuts tariffs between different countries as well as reducing/eliminating non-tariff barriers. The reason you're confused at the moment is because when you think 'integration', you think EU, NAFTA, ASEAN...all regional trading blocs that have basically shut off the outside world with tariffs...so your thinking, how does that free up trade

    But integration is not just limited to regional areas. For example, I can pretty much guarantee that the USA has some deals with China/Japan that allows for tariff free imports of certain goods...that is an example of integration

    Its not until we develop fully integrated trade that we can have a fully 'free' trade system

    trade liberalisation involved deregulating trade, removes barriers to entry....usually not directly linked to trade, so things like allowing foreign investors to invest, freehold properties for foreigners, enterprise subsidies etc This opens up opportunities for MNCs to move production, liberalisation promotes FDI....with liberalisation we can develop truly integrated trade patterns and hence a truly free trade system
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    How can the PIIGS recover and become more competitive? Also, what evaluation points are there for this kind of question.
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    (Original post by Tariq_3458)
    So the decline in the competitiveness of the PIIGS was due to the 'fixed' exchange rate against other members ?
    that was one of the factors yes

    others are things like reducing productivity, high inflation, high wages etc
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    (Original post by mqt)
    sure inbox me your email ...she sent it to us through email, although, someone on here sent it to me anyways
    Hey I could use this toolkit tonight!! Be good for a quick overview, been using only my book and notes so far...
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    Anybody got general arguements for/against globalisation
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    (Original post by xChelsea)
    Anybody got general arguements for/against globalisation
    allows technological spill overs,
    allows more competition, increase supply, lower prices
    Allows out sourcing so lower costs
    static and dynamic effiency gains

    but,
    low skilled workers in developed country will lose jobs to devloping country due to out sourcing
    short term can create more competition but long term many merges can takeplace and then a global monopoly is created
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    Can I just point out aswell guys...keep your eye on the news...BBC/SKY/Bloomberg...as you might pick out a few arguments for tomorrow with the Greece huhaa going on at the moment


    Good Luck folks!
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    (Original post by Elponchis_LOL)
    allows technological spill overs,
    allows more competition, increase supply, lower prices
    Allows out sourcing so lower costs
    static and dynamic effiency gains

    but,
    low skilled workers in developed country will lose jobs to devloping country due to out sourcing
    short term can create more competition but long term many merges can takeplace and then a global monopoly is created
    Thanks,
    Could you explain technological spill overs and outsourcing please.
 
 
 
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