Import Substitution

Essay specific features

 

Issue:

Business

 

Written by:

Linwood P

 

Date added:

November 20, 2011

 

Level:

University

 

Grade:

A

 

No of pages / words:

3 / 583

 

Was viewed:

6428 times

 

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Essay content:

While the industrial countries of today rely primarily upon the usage of relatively low tariffs, developing countries apply high tariffs or quantitative restrictions which either limit or completely exclude competition from their imports. Protection like that - high protection - discriminates against exports through the explicit/implicit taxation of the export activities...
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Protection like that - high protection - discriminates against exports through the explicit/implicit taxation of the export activities. Explicit taxation can take the form of export taxes whereas implicit taxation occurs as a result of the effects of protection on the exchange rate. As your protection level increases, your exchange rate level will decrease in order to ensure the necessary equilibrium of the balance of payments and the lower the amount of domestic currency exporters receive per unit of foreign exchange earned...
displayed 300 characters

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