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How might a country use import tariffs and quotas to control its balance of trade and payments?
Wiki User
∙ 12y ago
It can basically be described this way..
excessive trading - high purchasing power and which could be a result of "let capitalism rip" incidence where people borrow a lot of money, then government should increase tarrif on imported goods to discourage trade and regain market equilibration.. they should also increase quotas on loans to discourage borrowing and people will be more focused on paying back bad debts than borrowing more..
low trading - government should reduce tax on imported products to encourage investment from foreign companies and increase consumption. they should also reduce quotas on loans to increase borrowing and thus increase purchasing power of people.. through this way they will regain market equilibrium..
However, you must understand that gaining market equilibrium is not as easy as it sounds as government can control the tarrifs and quotas but they cannot control human decisions to make purchases.. it is just a form of encouragement and discouragement to try and ensure that the market is relatively within the equilibrium point.. where equilibrium point means the point at which demand equals supply in the country.. it is important in reduces excess that yield lose and also increasing supply to ensure the citizens are living in good health..
Wiki User
∙ 12y ago
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How does tariffs help us maintain a favorable balance of trade and balance of payments?
does Tariffs protect American jobs and wages.
What is one way that a negative trade balance can be converted into a 0 balance of payments?
the imposition of tariffs
What is the name of a current issue that involves international trade foreign exchange balance of payments tariffs and free Trade?
There isn't one..........................................................................................
Why is it difficult to Control consumer prices when selling overseas?
it often difficult due to tariffs placed on import to the other country
What are the positive and negative effects of tariffs?
Tariffs, or taxes on foreign imports, can be helpful to a country's economy by blocking competition from other countries. However, often when one country places a tariff on foreign goods, the country places its own tariff on the first country. Tariffs are not appreciated by the country on which it is being placed.
How does tariffs help us maintain a favorable balance of trade and balance of payments?
does Tariffs protect American jobs and wages.
What is one way that a negative trade balance can be converted into a 0 balance of payments?
the imposition of tariffs
What is a current issue that involves international trade foreign exchange balance payments tariffs and free trade?
I'm sorry, but i don't know! :( if you type in this sentence, this should help you out. "current issues that involves international trade foreign exchange, balance of payments, tariffs, and free trade"
What is the name of a current issue that involves international trade foreign exchange balance of payments tariffs and free Trade?
There isn't one..........................................................................................
What are 'tariffs'?
Tariffs are fees or taxes collected on imported goods. They serve as a source of revenue and also have the effect of raising the prices of such imported goods thus making similar internally produced goods more attractive . They also tend to decrease the overall volume of the imports to which the tariffs are applied and this may help with a balance of payments problem.
What are tariffs for?
Tariffs are fees or taxes collected on imported goods. They serve as a source of revenue and also have the effect of raising the prices of such imported goods thus making similar internally produced goods more attractive . They also tend to decrease the overall volume of the imports to which the tariffs are applied and this may help with a balance of payments problem.
What purposes do tariffs serve?
Tariffs are fees or taxes collected on imported goods. They serve as a source of revenue and also have the effect of raising the prices of such imported goods thus making similar internally produced goods more attractive . They also tend to decrease the overall volume of the imports to which the tariffs are applied and this may help with a balance of payments problem.
Why is it difficult to Control consumer prices when selling overseas?
it often difficult due to tariffs placed on import to the other country
What are the positive and negative effects of tariffs?
Tariffs, or taxes on foreign imports, can be helpful to a country's economy by blocking competition from other countries. However, often when one country places a tariff on foreign goods, the country places its own tariff on the first country. Tariffs are not appreciated by the country on which it is being placed.
What part of the country liked tariffs?
Tariffs worked mostly (and probably only) for the Northern states.
What is the main purpose of tariffs on imports?
Tariffs provide revenue for the country buying the imported goods. If a country wants to export goods to a country, they have to pay a tariff(tax) to be allowed to do so. China pays very low tariffs to the US on the goods they export to us.
Which part of the country was for tariffs?
At one point, the South was initially all for tariffs. They later changed their views because economic development did not progress as planned in that area of the country.
