It Is Sometimes Contended That by Imposing Import Controls a Country

question 54

Multiple Choice

It is sometimes contended that by imposing import controls a country might be able to increase its exports.This contention is premised on ________.

• A)the country's simultaneous currency depreciation, which decreases the price of its exports
• B)using the import taxes to institute efficiency measures in potential export industries
• C)raising domestic prices in one industry so that the excess domestic profits in that industry can compensate for the cost of dumping products from another industry into foreign markets
• D)getting other countries to maintain or relax their current import restrictions instead of escalating restrictions in a trade war

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Definitions:

Unrealised Intragroup Profits

Profits arising from transactions within a group of companies that have not yet been realized outside the group, often requiring elimination for consolidated financial statements.

Fair Value Adjustments

Adjustments to the reported value of an asset or liability to reflect its current market value.

Fair Value

The amount one would expect to receive from the sale of an asset or the cost to transfer a liability during a structured transaction among parties in the market as of the valuation date.

Financial Instruments

Contracts that give rise to both a financial asset of one entity and a financial liability or equity instrument of another entity, such as stocks, bonds, or derivatives.