1. Is the argument that a tariff is needed to protect infant industries valid? Why or why not?

2. What form of protectionism is most effective in limiting competition from foreign producers?

3. How can a nation have a favorable balance of trade but still have a deficit balance of payments?

4. Should the United States devalue the dollar further in an effort to improve its balance of payments? What would be the effects of devaluation be?

Answer rating: 100% (QA)

1 The levying of tariffs is often highly politicized The possibility of increased competition from imported goods can threaten domestic industries These domestic companies may fire workers or shift pr... View the full answer