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Unformatted text preview: to my country and receiving the money for the good or service that I am producing and no one is purchasing. The only option to me seems a quota that way I can limit the amount of imports reassuring that my company will still be able to produce and sell our goods or services. Putting a tax on imports does not seem to be in my best interest. References: Appleyard, Field, & Cobb. (2010). International Economics (Seventh Edition ed.). New York, New York: McGraw - Hill Companies, INC. Answer from book: You would prefer the quota because in this instance you would receive the benefits of the growth in demand via higher domestic prices and sales without any accompanying increase in imports. With the tariff or subsidy, at least some of the benefits of growth in the domestic market would accrue to foreign producers in the form of increased foreign exports. A quota also provides greater market certainty for producers....
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- Spring '11
- International Economics