Economic questions

1. In the Harrod-Domar model, if the savings rate is 20% and the incremental capital output ratio is five, abstracting from depreciation, what is the implied growth rate?
2. Why must projects be appraised? What do we learn from project appraisals?
3. How does the Washington Consensus differ from the Santiago Consensus?
4. What economic benefits might a developing country gain by reducing corruption? Discuss only economic benefits and provide examples from specific developing countries.
5. Briefly explain the major argument of the factor endowment trade theory.
6. Provide a concise statement about the relationship between a developing country’s emphasis on the export of traditional commodities and: (a) export earnings stability; (b) comparative advantage; (c) terms of trade.
7. State three country characteristics that encourage and three that discourage economic integration among developing countries.
8. What is an overvalued exchange rate? What factors may cause a country’s currency to become overvalued?
9. Explain what is meant by capital flight. How would you distinguish capital flight from the normal desire of investors to diversify their portfolios by investing abroad?
10. What economic variables would you need to consider in order to distinguish between a developing country with a short-term balance of payments problem and one in a debt crisis? Explain what data you would need to look at and why.
11. Why may the debt crisis be only “sleeping” rather than “dead?”
12. It has been argued that tied aid leads to inefficiencies in the recipient country’s economy. Explain how this could occur.
13. State three major potential advantages of foreign direct investment for a developing country. State three major potential disadvantages.
14. Explain the motives of developed countries in providing foreign aid.
15. Why does multinational corporation investment not necessarily offer the advantage of domestic employment expansion?
16. What are the main forms through which foreign capital flows into LDCs? Discuss the evolution of the various forms across the last decade.
17. Compare and contrast the workings of the organized and unorganized money markets in developing countries.
18. What are some of the major characteristics of financial repression? To what degree may financial liberalization be expected to address the issue of inadequate saving?
19. In what ways do the actual and potential roles of central banks differ between developed and developing countries?
20. What is a development bank? What are some of the reasons they have not had greater success?
21. Describe the costs and benefits of privatization of state-owned enterprises. In which cases would privatization seem most advisable?

Sample Solution

Economic questions

Project appraisal is the structured process of assessing the viability of a project or proposal. It involves calculating the feasibility of the project before committing resources to it. Project appraisal often involves making comparison between various options and this is done by making use of any decision technique or economic appraisal technique. Project appraisal management is an essential stage of any project, regardless of its nature, type and size. This stage represents the first point of the pre-planning or initiation phase. Without having appraised a project, it is financial and technically unreasonable to proceed with further planning and development.

It very well may be sensibly contended that the business condition in which associations presently work is regularly changing, exceptionally unsure, and progressively aggressive. As a result of this dynamic essential move in the business condition, authoritative pioneers are perceiving that long haul achievement relies on the capacity of pioneers to create and keep up viable and elite groups. The aggregate commitments of these groups enhance associations by “expanding profitability, utilizing assets all the more adequately, more prominent advancement and imagination, and better basic leadership and critical thinking” (Northouse, 2016, p. 364). This outcomes in constructive exhibition and individuals results, which give the association favored key situating and an upper hand.

There is anyway a plenty of obstructions to creating and keeping up exceptionally powerful and profoundly working groups. Both inner and outer powers can block colleagues from using their aggregate abilities and fluctuated characteristics, to work cooperatively and firmly towards plainly characterized and adjusted objectives, and a typical reason. The expectation of this paper is to address a portion of the more basic hindrances that groups must defeat so as to make esteem, thus that colleagues can arrive at their maximum capacity. Specifically, this paper will address inept authority, ineffectively created objectives and misalignment of aggregate objectives, and insufficient and poor correspondence. Proposals for vital activities will be offered which intend to wipe out the previously mentioned impediments to group achievement.

Absence of a Competent Leader

Probably the greatest trap to effective group building is the absence of a skilled pioneer. As indicated by Nelson and Quick (2013) skill is the capacity to play out an occupation satisfactorily (p. 413). While this definition is oversimplified in nature and doesn’t represent the bunch of complexities found in the present business scene, equipped administration is basic to the advancement and the support of profoundly compelling groups. As a result of the expanded extent of impact a group head has over colleagues, undertakings and obligations, improvement and execution of objectives, and the common vision, it makes sense that the ability of a pioneer can either drive the group to progress or block its encouraging.

Ramifications of Incompetent Leadership

Group elements. At the point when a group head needs capability he/she will be not able build up a group included people who have the essential information aptitudes, capacities, and center skills, to viably complete the elements of the group. To this end, pioneers won’t have the option to keep up a group where colleagues have the limit or the abilities to settle on choices that lead to expanded efficiency, and consequently group and authoritative achievement.

Suggestions for progress. Pioneers should give cautious idea and thought when building up a group. Colleagues ought to have an assortment of information, aptitudes, capacities, mastery, and center capabilities with the goal that assignments can be properly isolated and effectively practiced (Northouse, 2016, p. 370). Nonstop preparing and advancement openings ought to be given as the group and the group’s objectives advance. As the requirements of the group change, pioneers should create viable enrollment systems to draw in colleagues that will add to the achievement and viability of the group.

Trust. A clumsy pioneer can’t build up a group established on trust. When there is an absence of trust colleagues might not believe in their pioneer or in their individual partners. Without trust, colleagues will exhaust their time and vitality concentrated on the conduct of others instead of on accomplishing the group’s objectives (Brenner, 2012, para. 15). The nonappearance of trust can likewise frustrate inventiveness and development thusly the group gets stagnate and unfit to make an incentive for the association.

Proposals for progress. So as to construct a culture of trust inside a group, pioneers must exhibit the conduct they need others to copy which incorporates being straightforward with their very own shortcomings and disappointments. This will let colleagues realize that the pioneer doesn’t put him/herself above others, yet rather is humanly imperfect and has vulnerabilities. It additionally gives colleagues certainty to show their own weakness, accordingly expanding the degree of trust among the gathering. Pioneers should take uncommon consideration to rehearse steadiness, congruity, dependability, and uprightness, on the off chance that they need to encourage an unending situation of trust (Bennis, 2009, p. 152).

Strengthening. An inept pioneer is unequipped for creating and keeping up a group which is propelled, roused, drew in, and engaged. Such groups show counter-beneficial practices including absence of duty, low degrees of execution through inadequacy and wastefulness, quest for personal circumstances, and expanded truancy and turnover. Separated groups individuals affect in general group and hierarchical wellbeing which can adversely affect the main concern.

Suggestions for progress. Pioneers can enable and draw in representatives by permitting independence and investment in basic choices that influence the group as well as the association. Colleagues are than propelled and roused to take a personal stake in observing the group and the association succeed. Pioneers ought to benefit from the changed foundations, properties, and encounters of their colleagues, which open the entryway to development and innovativeness. Such a domain builds spirit, commitment, and it expands pledge to the accomplishment of the group. This dynamic shows that planned endeavors of partners under solid initiative can be fruitful when each colleague is permitted to work at their ideal level.

With an end goal to alleviate uncouth initiative we should initially perceive that capability incorporates “social/relationship abilities, enthusiastic knowledge, thinking aptitudes, care, focus and mindfulness” (Pitagorsky, 2013, para. 3). By moving toward inadequacy as a multi-faceted issue which doesn’t exist in a vacuum, we will have the option to all the more likely distinguish inventive answers for create and keep up profoundly viable groups.

Absence of Well Developed Goals and Goal Alignment

Setting up plainly characterized objectives is a central segment of group achievement. Objectives fill in as a diagram for all colleagues, and are essential in the improvement of activity designs that help colleagues understand their objectives. All individuals from the group ought to adjust their own objectives to those of the group so that there is group union, thus that all individuals are completely contributed and working cooperatively towards a typical reason and aggregate objective fulfillment.

Ramifications of Poor Goal Development and Lack of Goal Alignment

Loss of Purpose. At the point when pioneers neglect to plainly explain objectives colleagues dismiss their motivation, and inevitably the elements of the group are debilitated due to lack of engagement and demotivation (Brenner, 2012, para. 6). At the point when colleagues are not given clear and succinct objectives they can’t decide a purpose behind what they do. They can’t perceive the worth they add to the association, offering ascend to “uncertainty about headings and needs” (Lencioni, 2002, p. 209). This outcomes in colleagues not submitting themselves completely to the group or the association, profitability is reduced, and there is proof of a distinction between group objectives and hierarchical objectives (Gallo, 2011, para. 3).

Suggestions for progress. Workers at all levels must have the option to comprehend their separate jobs, and how their commitments make worth and result in authoritative achievement. To do this, pioneers and colleagues ought to recognize the objectives to one another. Pioneers ought to likewise enable time to examine and discuss applicable parts of the objectives engaged with the future assignments or vision. Groups would then be able to encounter profitable clash intended to bind together considerations and comprehension.

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