Macroeconomics: 3 Questions

Running Head : MacroeconomicsNameUniversityCourseTutorDateQuestion oneThe question of the efficiency between tariffs and quotas lies in the import insinuation to a rustic as implied by these tools . Generally tariff is any form of tax which is ideally imposed to the imports coming in a dry land . elsewhere , quota is a protective restriction which is imposed on imports which is aimed at reducing their physical quantities as entering a distinct country . Generally , tariffs provide greater efficiency than quotas . This is because of the wide spreading of taxation imposition in a country all the times which captures various requirements like economic recession which require lower imports and at high economic scope which could allow greater imports . However quotas are less efficacious as their impacts may have a counter e xercise to the flow of imports in a country at a given point in time (Akerlof 2003Question twoThe economic deductive reasoning of profession restrictions is to provide a stable state of remainder of payments . Through sight restrictions , the state of imports is monitored depending on the requirements of the economy . Since embossment on betray deficits is economically bad as in imposing negative implication to the country , such spoil restrictions are made to monitor the status of inflow and inception in the foreign spate transaction .

These are tools for creating a strong balance of payment on care dealing by a country with its trading partne! rs (Akerlof , 2003Question threeTo Cuba , the clientele embargo put to it by the U .S was substantially ineffective . This is by the virtue of the developing trade relations which Cuba had with former(a)wise trade partners . Though this was made to create economic instabilities in the trade between Cuba and U .S however , many Islamic trade partners like Russia , China above others were developing in been tranquil more responsible in the rich Cuba . Cuba continued to expediency economic efficiencies , which implies favorable balance of trade created by other new trading partners . Perhaps , U .S was only loosing in the same embargoReferenceArkelof , G (2003 ) Behavioral Macroeconomics and Macroeconomic Behavior American Economist , vol . 47PAGEPAGE 1 Macroeconomics...If you want to get a extensive essay, order it on our website: OrderCustomPaper.com

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