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Welfare Effects of Tariff can be understood as follows:
It is important to understand what the welfare effects for the tariff are. While a tariff might seem desirable because it generates revenue, and might help in protecting domestic producers, it can often leave the domestic consumers quite worse off. This is because domestic producers only have to compete with the higher price of the imported goods, not with the actual price of those goods are being produced at. Thus the domestic consumers in a way are forced to consume the goods produced by less the efficient domestic producers.
Question: a) With the help of illustrative and numerical examples explain fully the concepts of spatial and triangular parity and arbitrage in the context of foreign exchange.
Q. Countries do not in fact export the goods the H.O. theory predicts. Discuss. Answer: This statement isn't true that though one may find several cases where it seems to be
describe this thery in detail?
Q . While selling exports it could also maximize its domestic sales by equating its marginal (opportunity) cost to its marginal revenue of $5. How much steel could the firm sell
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Explain how the money markets of two countries are linked through the foreign exchange market. Answer: The financial policy actions by the Fed affect the U.S. interest rate al
How to calculate effective rate of protection
What are the benefit derived by Indian Corporates due to WTO - TRIPS?
difference between classical and neo classical theory of international trade.
"1. Describe the important benefits enjoyed by Indian companies through TRIPs. Elaborate the main objectives of WTO in global economy. 2. "Leontiff paradox is proved in th
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