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How Could Exchange Rate Protection Of, for Example, 10 Percent

question 21

Essay

How could exchange rate protection of, for example, 10 percent, be duplicated in its effects across export and import-substitute industries by using tariffs and subsidies instead? Explain. Suppose that you are a firm in an import-substitute industry that is currently receiving less protection than most other import-substitute industries. Would you be in favor of scrapping the existing protection framework and adoption of exchange rate protection as an alternative policy? Explain.


Definitions:

National Labor Relations Board (NLRB)

a federal agency in the United States responsible for enforcing US labor law in relation to collective bargaining and unfair labor practices.

Financial Settlements

Agreements reached between parties in dispute, where monetary compensation is made to settle the matter without going to trial.

Harassment

Unwanted conduct affecting the dignity of men and women in the workplace, which may lead to a hostile work environment.

Reasonable Person

A legal standard used to determine how an average person would responsibly act under specific circumstances.

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