Two arguments used to promote trade barriers are the infant-industry argument, and the dumping argument. Explain each of these arguments and evaluate whether each one has any flaws.
What will be an ideal response?
Question 2
The country of Pimm exports 500 billion worth of goods and services and imports 400 billion worth of goods and services. Net interest income paid abroad is 50 billion and net transfers are 0. The current account balance is ________.
A) 50 billion
B) 100 billion
C) 150 billion
D) 975 billion