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Author Question: If the tariff on computers is not changed, but the government then adds hitherto nonexistent tariffs ... (Read 12 times)

leo leo

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on: Jun 30, 2018
If the tariff on computers is not changed, but the government then adds hitherto nonexistent tariffs on imported semi-conductor components, then the effective rate of protection in the computer industry will
 
  A) increase.
  B) decrease.
  C) remain the same.
  D) depend on whether computers are PCs or Supercomputers.
  E) no longer apply.

Question 2

Briefly discuss the following:
 
  (a) Debt-equity swaps
   (b) IMF conditionality
   (c) LIBOR
   (d) Petrodollars


Jayson

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Reply #1 on: Jun 30, 2018
Answer to Question 1

B

Answer to Question 2

(a) Purchasing debt on the secondary market at a discount from face value and then trading the debt for the currency of the debtor nation to use for equity investments.
(b) Conditions imposed by the IMF on a borrowing country to encourage stable growth.
(c) LIBOR-London Interbank Offer Rate, the rate charged by large banks in London for loans and deposits.
(d) Deposits from oil exporter nations.


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