BEC Economic Theory Review 14
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What is a Import Quota mean in terms of a control strategy ?
An import Quota is a limit on the quantity of specific products that may be imported.
What is a Tariff mean in terms of a control strategy ?
Tariffs or taxes on imports allow any quantity to be imported by make it more expensive to do so.
What is a Export Incentive mean in terms of a control strategy ?
A subsidies from the government to producers, typically in a protected industry.
What is a Substitution mean in terms of a control strategy ?
Develop substitutions for imported products.
What does a shift in customer preference mean in terms of a control strategy?
encourage customers to buy domestic products as a patriotic activity for instance saving local jobs or national self-sufficiency.
What does a domestic content quota mean in terms of a control strategy?
Requiring or encouraging through favorable tariff treatment a portion of imported products in protected industries be constructed at least partially in the importing nation.
What is a exchange rate?
an exchange rate is the price of one countries currency in terms of another currency.
In terms foreign exchange, what is the market equilibrium (floating exchange rate)?
Prices are set by market forces just as for other goods.
what is another name for market equilibrium?
floating exchange rate
In terms of foreign exchange, what is the government policy (fixed exchange rate)?
a government may set a fixed exchange rate.
in terms of foreign exchange, what is another name for government policy?
fixed exchange rate
in terms of foreign exchange, what is a market float?
market forces primary guide exchange rates however, governments intervene to maintain stability during periods of extreme fluctuations.
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