Economic theory in general, and trade theory in particular are ...

[cartlidgeashley]

Economic theory in general, and trade theory in particular are replete with equivalencies.
 
  For example, it is argued that for any specific tariff one can find an equivalent ad valorem tariff; and that for any quota one can calculate a tariff equivalent. Discuss conditions or situations under which a specific and an ad valorem tariff are not equivalent. Discuss conditions or situations when a tariff and a quota are not equivalent.

Question 2

Indicate below the activity that the IMF is not involved in.
 
  A) financing countries' BOP deficits through temporary loans
  B) overseeing exchange rate policies
  C) monitoring BOP imbalances
  D) issuing a composite currency called ECU

[ladyjames123]

Answer to Question 1

E.g., during a period of price inflation, an ad valorem tariff would become increasingly more effective. The government does not receive any of the quota revenues, unless the import licenses are sold or auctioned.

Answer to Question 2

D