Discuss The import substitution strategy in the context of a country's large trade deficits with key international partners?

Q: Which of these situations will result in a stronger Omani Riyal? a. An increase in the exportation…

A: Strengthening or weakening of a domestic currency depends on the demand and supply of currency in…

Q: Since the 2000s, U.S. trade deficit in goods has increased the most with which of the following…

A: A trade deficit is an amount by which the cost of a country's imports exceeds its exports.

Q: Compute the ratio of exports to imports for 2020 for each category.

A: The transfer of goods and services from one entity to another entity being done in exchange for…

Q: Technological changes in telecommunications have: Select the correct option and explain why its…

A: An increase in efficiency of process or product that would result in an increase in the level of…

Q: Let us assume that we have an open economy, and the world price is higher than the domestic price;…

A: An open economy is defined as an economy where domestic production exists but also allows…

Q: If an economy has a widening trade deficit, which of the following monetary policy option will…

A: A trade deficit happens when there is a negative net sum or negative equilibrium in a worldwide…

Q: In a country, private savings equals 600, the government budget surplus equals 200, and the trade…

A: We are given private savings as 600, government budget surplus as 200 and trade surplus as 100.…

Q: C= 500 + 0,8Y, tax rate(t)= 0,25, G=1000 ve I= 1200. X= 500, M= 500 + 0,1Y. Calculate the trade…

A: Y = C+I+G+Xn Y = 500 + 0.8 (Y-0.25Y) + 1000 + 1200 + 500 - 500 - 0.1Y Y = 2700 +0.8Y -0.2Y -0.1Y…

Q: Using the national savings and investment identity, explain how each of the following changes…

A: The trade balance refers to the record of the exports and the imports of a country to or from other…

Q: Derive graphically the aggregate demand curve under fixed exchange rates and explain the…

A: The word aggregate demand refers to a situation in which the demand for a certain item is evaluated…

Q: categorize each of the following as strength,weakness,opportunity,or threat. Provide a brieft…

A: 1. Appreciation of the peso exchange rate Weakness If the peso exchange rate would be appreciated it…

Q: How much of one good exchanges for a unit of another good is known as Balance of Trade Terms of…

A: When countries engage in international trade, they exchange one good for other.

Q: You are an IMF official going to a country whose export earnings are not able to pay for imports.…

A: International Monetary Fund is a global association financed to a great extent by industrialized…

Q: When looking only at the import and export of services, the U.S.    a. has a trade deficit b. has a…

A: When imports of a country are greater than its exports, it is said to have a trade deficit. When…

Q: Many think that the size of a trade deficit is due to a lack of competitiveness of domestic sectors,…

A: Trade deficit refers to a situation in which the value of imports of goods and services of a nation…

Q: In an open economy, if exports equal $8 billion and imports equal $3 billion, then there is a trade…

A: Net capital outflow is the net flow of funds being invested abroad by a country over a certain…

Q: A country's annual imports are  I(t) = 30e0.2t  and its exports are  E(t) = 20e0.1t,  both in…

A: Country’s annual export and import are shown below.

Q: 10. Which of the following is FALSE? A) Tariffs are a relatively easy tax to administer and often…

A: The answer is - D) Tariffs are not an attractive tax option for most low-income countries, so they…

Q: “Trade policies determine the size of markets for the output of firms and hence strongly influence…

A: International business is done with the goal of expanding and diversifying commercial activities…

Q: A trade deficit occurs when a nation imports more than it exports. True O False

A: International economics is that branch of economics which studies various international aspects that…

Q: Explain why the WTO is more concerned with the use of direct-export subsidies than production…

A: Meaning of Trade: The term trade refers to the situation under which the products and goods are…

Q: What does a trade deficit imply?     saving is greater than domestic investment and Y > C + I + G…

A: Trade deficit is said to occur when a country imports more goods and services from other countries…

Q: Answer your friend who claims that Japan as an advanced country does not need (1) inbound tourism…

A: To answer the claim, Japan or any country needs inbound tourism revenues as revenue is the source…

Q: Which of the following would have the greatest positive impact on a country's domestic economy? An…

A: The domestic value of an economy is represented by its gross domestic product which is the aggregate…

Q: ) Suppose a small open economy cannot produce consumption goods or output that the government can…

A: Macroeconomics is a sub-part of economics that deals with the production, allocation, and…

Q: For a small, open economy when spending exceeds production then I. This country will run a trade…

A: Solution: For a small, open economy when spending exceeds production then a) This country will run a…

Q: Policies that ......... tend to cause .............. (QUESTİON MAY HAVE MORE THAN ONE CORRECT…

A: The policies that cause an increase in investment will be followed by the deficit in the trade…

Q: Which of the following trade policies limits specific quantity of goods to be imported at one tariff…

A: In an economy, there are various methods to reduce the amount of goods and services imported by the…

Q: Should imports to the United States be curtailed by, say 20 percent to eliminate our trade deficit?…

A: The balance of trade refers to exporting and importing and, hence, evaluating the overall economic…

Q: The macroeconomic view of a trade deficit implies that, other things equal, the imposition of a…

A: Trade deficit is a situation in which value of a country's imports exceeds the value of exports.

Q: QUESTION 9 A trade deficit must be equivalent to domestic investment minus domestic savings. True O…

A: The balance of trade of a country is known as the difference between the value of the country's…

Q: What are the likely reasons of large trade deficit in Pakistan?  How would you compare the trade of…

A: 1 A trade deficit is an amount by which the cost of the country's imports exceeds its exports. It is…

Q: Which of the following would NOT be an advantage of MNC investment for a host nation? a. Direct and…

A: Evaluating the given options. Employment, either direct or indirect that is generated is an…

Q: Which of the following was a positive side-effect of Latin America’s import substitution…

A: Import substitution policies are measures adopted to control import of foreign goods and encourage…

Q: Discuss the effects of domestic support on imports and export? Give an example.

A: Protestantism is a practice in which protectionist trade policies are followed. This policy allows…

Q: The macroeconomic view of a trade deficit implies that, other things equal, the imposition of a…

A: The statement is True.

Q: The United States has been able to run international trade deficits, year after year, because

A: Increase in percentage of population that has attended colleges means increase in the general…

Q: Suppose a country exports $60 million worth of goods and services, while it imports $50 million…

A: The term GDP means the aggregate total output produced by a country in the current year. This…

Q: Explain the challenge of a trade deficit on an economy

A: The trade deficit is the amount by which the value of import of a country exceeds the value of…

Q: Would you kindly explain the fallacy or mistake in this type of thinking. Identify the fallacy or…

A: Economic agents include producers, consumers, and the government. They would result in the…

Q: Under what conditions will a larger budget deficit cause a trade deficit?

A: Budget deficit occurs when the government expenditure exceeds the government revenue. Trade deficit…

Q: President Trump is currently getting tough on trade. This means he wants terms of trade so that…

A: When service is produced, fixed and variable cost  takes place and process of business follow ups.…

Q: The macroeconomic view of a trade deficit implies that, other things equal, the imposition of a…

A: A trade deficits occurs when a nation's imports is more than its exports. So, the macroeconomic view…

Q: A trade deficit means a net    inflow of payments for goods and services outflow of goods and…

A: In foreign trade,  exports signify the amount of domestic goods and services that foreign firms and…