Balance of payments - reason for protection, Managerial Economics

Balance of Payments

Perhaps the most immediate reason for bringing in protection is a balance of payment deficit.  If a country had a persistent deficit in its balance of payments, it is unlikely to be able to finance these deficits from its limited reserves.  If therefore becomes necessary for it adopt some form of restriction on imports (e.g. tariffs, quotas, foreign exchange restrictions) or some means of boosting its exports (e.g. export subsidies).

Posted Date: 11/30/2012 4:59:02 AM | Location : United States







Related Discussions:- Balance of payments - reason for protection, Assignment Help, Ask Question on Balance of payments - reason for protection, Get Answer, Expert's Help, Balance of payments - reason for protection Discussions

Write discussion on Balance of payments - reason for protection
Your posts are moderated
Related Questions

What are terms included in oligopoly? Oligopoly includes: • The meaning of oligopoly, and why it arises • Collusion • Game theory, particularly the concept of the pris

A firm hires two risk-neutral workers to assemble bicycles and pays $20 for each assembly.Charlie's marginal cost of allocating effort (measured in dollars) to the production proce

Write about International economic integration of the Republic of Moldova

How can a firm''s security policies contribute and relate to the six main business objectives.give example

To eliminate competition and thereby secure higher prices, firms producing a specific product can come together and make monopoly agreements. These are called as industrial combina

Short-Term Policies Deflation is a policy of reducing expenditure with the intention of curing a deficit by reducing the demand for imports.  This reduction of expenditure m


Q. Cheapening of Materials and Equipments? Expansion of an industry increases the demand for different kinds of materials and capital equipments. This will result in large scal

DIFFERENTIALS AND DISEQUILIBRIUM In a free enterprise system, workers aim at maximizing their wages.  Hence, it would be expected that workers would move form low-paying indus