Governments often pursue policies that promote exports while limiting imports. What are some of those policies? Does this make sense? What kinds of problems can policies cause for companies in these countries?© BrainMass Inc. brainmass.com October 25, 2018, 6:57 am ad1c9bdddf
One of the main policies when limiting imports are called import quotas. Import quotas are designed to limit the imports from various countries. This reduces competition from countries. If the domestic market is heavy with domestic made shoes and the imports the country receives have imports consisting of many shoe shipments, by placing an import quota on the shoes they can receive, the citizens will be more encouraged to buy the domestic made shoes, which keeps the domestic shoe manufacturers in business. This prevents other ...
This solution discusses government policies that promote exports and limit imports and discusses the advantages, disadvantages, and problems that these policies present.
Multinational subsidiary host balance of payments (BOP) deficit; what measures?
1. You are the chief executive officer of a multinational's subsidiary in a developing host country. The subsidiary has been in business for about eight years, making electric motors for the host country's domestic market, with mediocre financial results. Before you left the home country a month ago, you were told to make the subsidiary profitable or consider closing it.
After a month in the host country, you have discovered that it (the country in question) is running a worsening balance of payments (BOP) deficit and that the government's officials are very concerned about the situation. They are considering various measures to stanch or reverse the deficit flow.
What measures might be adopted? Can you think of some ways your company might profit from them or at least minimize the damage?
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