South Africa is proposing a project that will increase sugar
cane production in the country. South Africa is a net exporter of
sugar cane and exports to the UK. Assume the following: • The CIF
at Liverpool, UK is £360 per ton • Freight, insurance and unloading
from Cape Town, a South African port to Liverpool is £15 per ton •
Local port charges at South Africa is 150 Rand per ton • Transport
and marketing costs from warehouse to...
South Africa is a country with high unemployment rate. Some
researchers have suggested that the South African government should
adopt expert-led growth policies to address this problem given that
increasing exports has the potential to increase productivity.
Should the South African government increase its economic openness
without government regulation of any kind?
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There is a large increase in the global demand for diamonds, of
which South Africa is the biggest producer. At the same time, the
central bank of South Africa cuts the interest rate. Explain (with
appropriate diagrams) the effects of the above events on: (a) The
demand for rand (South African currency) (b) The supply of rand (c)
The exchange rate of the rand against the U.S. dollar