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PART 5. In any sophisticated economy there is an extensive capital market: a set of arrangements by which individuals and firms exchange money now for

PART 5. In any sophisticated economy there is an extensive capital market: a set of arrangements by which individuals and firms exchange money now for promises to pay in the future. Apply the instruments used by the international capital markets to show how it has increased the gains from trade? (10 Marks) (C5)

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