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Dear Mr Moffat
It could be pretty ambiguous but would you please help in clarifying:
1) how the current oil prices can be linked to P4?
From your lecture notes, chapter 23 partly explains one of the root causes of the debt crisis related to the oil price. The oil price in the 70’s increased that led to higher inflation and the balance of payments worsen consequently,…Now it seems that it is in the opposite way, so what would be possible influences please advise?
How about the gold, will it be linked to any of P4 area that we need to know basically?
2) If a country leaves the common Euro currency, what would be the disadvantages and this advantages for that country and for the European area in overall?
Thank you very much.
Hanhvn
P4 does not specifically test you on the effect of oil prices or of gold prices. However you are expected to have a general awareness of what is happening in the world and the possible effect on the financial manager. It is something that you cannot really learn – it is more a question of just reading the financial press and being up-to-date on what is happening.
With regard to the Euro, it is a topical issue (although whether or not it will be mentioned in the exam is purely guesswork – if it is it would be in one of the three choice questions).
I cannot type an essay here, but if you do a search on Google you will find lots and lots of articles about the possible effects in Greece were to leave the Euro.Many thanks Mr Moffat.
I am highly appreciated for all of the helps from you and OP!Thank you very much.
Please stay healthy :).
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