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Smart Reasoning:

C&E

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Qaagi - Book of Why

Causes

Effects

government and administered by the South African Reserve Bank(passive) set byexchange controls

the government and administered by the Reserve Bank of India under the terms of the Foreign Exchange Management Act(passive) are set byexchange controls

may result in a flow of funds out of the foreign countrytriggeringexchange controls

If product can be exchanged with a cheaper / expensive one , he needto createExchange Order

late socialist leader Hugo Chavez(passive) created byExchange controls

the Minister of Finance(passive) were set byExchange controls

YOU ABLETO DESIGNTHE EXCHANGE CONTROL

Table of contentsCreateExchange Order

any stepsleadingtoward exchange control

with payment delayscreatedwith payment delays

the serious distortions(passive) created bythe serious distortions

up a business Principal forms of business entity Regulation of business Accounting , filing and auditing requirementsSettingup a business Principal forms of business entity Regulation of business Accounting , filing and auditing requirements

or limit the buying and selling of a national currency at the market ratepreventor limit the buying and selling of a national currency at the market rate

South AfricanspreventsSouth Africans

the offshore transfer of intellectual propertypreventsthe offshore transfer of intellectual property

to sustained capital flight out of the country into overseas bank accountsleadingto sustained capital flight out of the country into overseas bank accounts

tr ading make it impossible to move capital out of the countryare designedtr ading make it impossible to move capital out of the country

to punish businesses sympathetic to the oppositiondesignedto punish businesses sympathetic to the opposition

distortions and can disrupt economic efficiency and growthcould createdistortions and can disrupt economic efficiency and growth

a devaluation of the peso and higher inflationwould provokea devaluation of the peso and higher inflation

to the stunting of the export sector and reduced forex earnings · Misallocation of resourcesleadingto the stunting of the export sector and reduced forex earnings · Misallocation of resources

payments to be blockedcausingpayments to be blocked

to shortages of even basic goods and penalizing the industrial sector Inflation among the highest in the world Increasing political tensions over constant shortages , high inflation and crime Heavy state interventionleadingto shortages of even basic goods and penalizing the industrial sector Inflation among the highest in the world Increasing political tensions over constant shortages , high inflation and crime Heavy state intervention

to prevent effectively the outflow of capitaldesignedto prevent effectively the outflow of capital

the Angolan operating companies from transferring funds to the Companypreventthe Angolan operating companies from transferring funds to the Company

those subsidiaries from remitting dividends or other payments to uscould preventthose subsidiaries from remitting dividends or other payments to us

Naspers from moving its primary listing from SA , where capital outflows are weighing on the internet holding company ’s share pricepreventNaspers from moving its primary listing from SA , where capital outflows are weighing on the internet holding company ’s share price

to company from converting pesos to dollars to ship back to the home officepreventedto company from converting pesos to dollars to ship back to the home office

to prevent Germany 's weak foreign exchange position from hindering the acquisitioin abroad of raw materials needed for rearmamentdesignedto prevent Germany 's weak foreign exchange position from hindering the acquisitioin abroad of raw materials needed for rearmament

to prevent Germany 's weak foreign exchange position from hindering the acquisition abroad of raw materials needed for rearmamentdesignedto prevent Germany 's weak foreign exchange position from hindering the acquisition abroad of raw materials needed for rearmament

to prevent Germany 's weak foreign exchange position from hindering the acquisition abroad of ram materials needed for rearmamentdesignedto prevent Germany 's weak foreign exchange position from hindering the acquisition abroad of ram materials needed for rearmament

importers from converting local currency into foreign currency in order to make trade paymentspreventimporters from converting local currency into foreign currency in order to make trade payments

an associated enterprise from transferring interest payments abroad on a loan made by another associated enterprise located in a different countrymay ... preventan associated enterprise from transferring interest payments abroad on a loan made by another associated enterprise located in a different country

an international diversification of risk and a reduction in the exposure of contractual savings institutions to domestic currency and market riskpreventan international diversification of risk and a reduction in the exposure of contractual savings institutions to domestic currency and market risk

free access to foreign exchangepreventfree access to foreign exchange

the discharge of the debtpreventingthe discharge of the debt

in international investorscould resultin international investors

limitssetlimits

private clients from doing this ... but it does mean that the price of the two shares on the different exchanges will be kept in sync – taking exchange rates into accountpreventprivate clients from doing this ... but it does mean that the price of the two shares on the different exchanges will be kept in sync – taking exchange rates into account

your money being sent abroadwill preventyour money being sent abroad

to limit international flows of capitaldesignedto limit international flows of capital

local currencies from being converted into hard currencies or restrictions against their transferpreventlocal currencies from being converted into hard currencies or restrictions against their transfer

large flows of funds from local institutionspreventinglarge flows of funds from local institutions

a ‘ shortage ’ money(passive) caused bya ‘ shortage ’ money

to divorce it from marketsare designedto divorce it from markets

risk for currency traderscreaterisk for currency traders

to barriers to export sectorleadingto barriers to export sector

to support a fixed exchange rate regimedesignedto support a fixed exchange rate regime

sizeable capital flowspreventedsizeable capital flows

Blob

Smart Reasoning:

C&E

See more*