If Your Primary Motive Was to Raise Prices on Imports

question 236

Essay

If your primary motive was to raise prices on imports, would you use tariffs or quotas? Why would you want to do this?

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Definitions:

Price/Earnings Ratio

A valuation metric measuring a company's current share price relative to its per-share earnings, used to evaluate if a stock is over or under-valued.

Net Income

The profit of a company after all operating expenses, taxes, and interest are subtracted from total revenue.

Quality of Income Ratio

A financial metric that assesses the ability of a company to translate its earnings into cash, providing insight into financial health and operational efficiency.