Why would foreign firms export a product at less than its cost of production—which presumably means making a loss? ... Many nations participate in poor planning and as a result produce a surplus of product which they sell at a loss .
What means selling goods below their cost of production?
Dumping refers to selling goods below their cost of production. Anti-dumping laws block imports that are sold below the cost of production by imposing tariffs that increase the price of these imports to reflect their cost of production.
Which of the following would be expected if the tariff on foreign-produced automobiles were decreased?
Which of the following would be expected if the tariff on foreign-produced automobiles were increased? The domestic price of automobiles would fall . The supply of foreign automobiles to the domestic market would be reduced, causing auto prices to rise.
Why might a country use a quota on imports from another country?
Countries use quotas in international trade to help regulate the volume of trade between them and other countries . Countries sometimes impose quotas on specific products to reduce imports and increase domestic production. In theory, quotas boost domestic production by restricting foreign competition.
Which of the following would be expected if the tariff on foreign-produced shoes were decreased quizlet?
Which of the following would be expected if the tariff on foreign-produced shoes were decreased? The domestic price of shoes would fall .
What are the types of quota?
There are two types of quotas: absolute and tariff -rate . Absolute quotas are quotas that limit the amount of a specific good that may enter a country. Tariff-rate quotas allow a quantity of a good to be imported under a lower duty rate; any amount above this is subject to a higher duty.
What is an example of dumping?
Excess supplies are destroyed . Example, Asian farmers dumped small chickens into the sea. Another method is to have the excess supply dumped in a foreign market where the product is normally not sold. ... It involves sale of goods in overseas markets at a price lower than the home market price.
Who benefits from a tariff?
Tariffs mainly benefit the importing countries , as they are the ones setting the policy and receiving the money. The primary benefit is that tariffs produce revenue on goods and services brought into the country. Tariffs can also serve as an opening point for negotiations between two countries.
Why would foreign firms export a product at less than its cost of production which presumably means making a loss group of answer choices?
Why would foreign firms export a product at less than its cost of production—which presumably means making a loss? ... Many nations participate in poor planning and as a result produce a surplus of product which they sell at a loss.
Why tariffs are bad for the economy?
Tariffs can have unintended side effects. They can make domestic industries less efficient and innovative by reducing competition . They can hurt domestic consumers since a lack of competition tends to push up prices. They can generate tensions by favoring certain industries, or geographic regions, over others.
What is it called when one country Cannot trade with another country due to political tensions?
An embargo is a government order that restricts commerce with a specified country or the exchange of specific goods. An embargo is usually created as a result of unfavorable political or economic circumstances between nations.
What occurs when one country refuses to buy goods from another country?
An embargo is when one country completely refuses to trade with another country.
Is a law that bars trade with another country?
Trade embargoes forbid trade with another country. The government orders a complete ban on trade with another country. The embargo is the harshest type of trade barrier and is usually enacted for political purposes to hurt a country economically.
What matters most in determining the efficient distribution of production over the world is group of answer choices?
What matters most in determining the efficient distribution of production over the world is: absolute advantage .
When a country allows trade and becomes an importer of steel?
the gains of the domestic consumers of steel exceed the losses of the domestic producers of steel. When a country allows trade and becomes an importer of steel, the gains of the winners exceed the losses of the losers .
Which of the following will most likely cause a depreciation in a country’s currency?
Easy monetary policy and high inflation are two of the leading causes of currency depreciation.
