Which of the following is not a measure for reducing bala...
Which of the following is not a measure for reducing balance of payments deficits?
Export drive
Reducing tariffs
Adding to export goods
Increasing local production
Correct answer is B
Tariffs are duties (taxes) imposed on imports. When tariffs are imposed, the prices of imports would increase to the extent of tariff. The increased prices will reduced the demand for imported goods and at the same time induce domestic producers to produce more of import substitutes. Non-essential imports can be drastically reduced by imposing a very high rate of tariff. Therefor, reducing tariffs will further increase balance of payment deficits.
One of the factors affecting change in demand for a commodity is the _______? ...
The larger a firm, the lower its cost of production This statement explains the? ...
Fiscal policy measures imply a change in ...
International trade takes place because of difference in ...
In order to accelerate economic development, a country must ...
When the value of a nation’s export is greater than its imports ...
What to produce in any society is determined by the ...
An example of transfer payments in national income accounting is ...