Author Question: Explain the different problems encountered by policymakers when trying to administer import ... (Read 96 times)

melina_rosy · **on:** Jun 29, 2018

Explain the different problems encountered by policymakers when trying to administer import controls.

Question 2

Which of the following seeks to diagnose reasons for business outcomes and focuses specifically on the beliefs and feelings respondents have about and toward specific issues?
a. causal research
b. diagnostic analysis
c. concomitant research
d. test-market

ansleighelindsey · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

Policymakers are faced with several problems when trying to administer import controls. First, most of the time such controls exact a huge price from domestic consumers. Even though the wide distribution of the burden among many consumers may result in a less obvious burden, the social cost of these controls may be damaging to the economy and subject to severe attack by individuals. A second major problem resulting from import controls is the downstream change in import composition that results from these controls. Initially narrowly defined protectionist measures may have to snowball in order to protect one downstream industry after another. A final major problem that confronts the policymaker is that of efficiency. Import controls, which are frequently designed to provide breathing room to a domestic industry either to grow or to recapture its competitive position, often turn out not to work. Rather than improve the productivity of an industry, such controls provide it with a level of safety and a cushion of increased income yet let the drive for technological advancement fall behind. Alternatively, supply may respond to artificial stimulation and grow far beyond demand.

Answer to Question 2

B