Suppose the Government of a Small Country Has to Frame

question 37

Essay

Suppose the government of a small country has to frame a policy which would promote the level of domestic production or employment of import-competing industries. It is left with a choice of either imposing a tariff on the foreign goods or providing production subsidies to the domestic firms. Which policy will the government choose and why? Explain with a diagram. Is there a particular principle that can guide the government's decision? If so, name and state it.

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Definitions:

Cultural Strengths

Characteristics, values, and behaviors that are positively embraced and promoted within a specific culture.

Relocation Act

Refers to government legislation that facilitates or requires the movement of people from one area to another, possibly for economic, environmental, or social reasons.

Internal Conflict

A psychological struggle within the self, arising from opposing desires, beliefs, or impulses.

Cultural Reasons

Motivations or explanations that are deeply rooted in one's cultural background and beliefs.