You are required to write a report that critically evaluates each concern individually. Mr. Amiable has heard of the large balance of payments deficit of the United States economy. He argues: “Surely this means that there is a larger supply of dollars for imports than demand for dollars for US exports, so the value of the dollar is bound to fall.” Mr. Happy adds: ”No, the dollar will not necessarily devalue” to which Mrs. Supreme says: “Even if it did, the balance of payments would not necessarily improve, it could even get worse” Mr. Henny makes the following point: “I am more concerned about the how the Australian government might make it more difficult for us to operate should we decide to move our smelting operation to Frustralia. Mrs. Pomona remarks: “You are wandering off the point. Our choice does not depend on the US balance of payments or whether we produce in Australia but on how we generally manage our currencies. Only against that background can we make a choice.
Subject Name: Finance
Level: Postgraduate
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