read chapter 7 and answer the questions bellow. i attached the book. please answer the questions only based on the book you read.Please read chapter 7answer the following questions:1.Explain why...

Q1)
Monetary policy, regardless of the degree of capital mobility, is utterly ineffectual with a fixed exchange rate. In each situation, a growth in the money supply causes a Balance of payment deficit, resulting in the loss of reserves and the return of the money supply to its prior level. Expansionary fiscal policy causes the IS curve to move to the right. Interest rates are being pushed higher. When the trade balance deteriorates, the currency depreciates, moving the BP curve to the right if capital is stationary. At a greater income and interest rate, the balance is restored. In the case of working capital, higher interest rate pressure creates sufficient capital inflows to cause the exchange rate to rise. The BP curve begins to move to the left. Because of the loss in international competitiveness, there is a jostling effect. Accrual is complete in the situation of perfect working capital. Under flexible exchange rate conditions with perfect capital mobility, fiscal policy is absolutely useless.
Q2)
Rapid global economic integration, or "globalisation," is the process through which countries become more intertwined. Globalization has boosted communication and business across countries. Multinational corporations play an important role in the globalisation process. They also contact directly with small manufacturers in the surrounding region, allowing them to integrate the market despite their distance. Their activities foster global linkages by boosting investment and international trade.
Q3)
There are various advantages to a fixed exchange rate regime. For starters, it stabilises the currency, making company planning and growth easier. Second, because investors know precisely how much they will be paid in foreign currency, fixed exchange rates make it easier for governments to borrow money. Finally, it boosts people's faith in their currency, attracting investment and promoting business. A floating exchange rate reduces the need for reserves, prevents inflation, and allows monetary and financial authorities to seek internal constraints such as full employment.
Fixed exchange rates are effective in emerging economies that lack stable monetary policy. Fixed exchange rates aid in the stabilisation of a country's economy and the attraction of foreign investment. Floating exchange rates are most successful in nations with stable and effective monetary policies.
Q4
Regionalism is a global trend that evolved after World War II in which signatories to regional trade treaties grant more advantageous trade treatment in commercial affairs. commerce in comparison to the rest of the globe In a political sense, it refers to a common sense of identity held by areas in a specific geographical area that exhibits fraternity towards a distinct culture and language. Economic regionalism promotes the free movement of products and services while also facilitating cooperation among nations in comparable geographical areas. Economic regionalism runs counter to the WTO's "most-favored-nation arrangement," which treats all...