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Anti-Dumping Argument and Restricting Imports?

by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy

What is the Anti-Dumping Argument for Restricting Imports? Dumping refers to selling goods below their cost of production. Anti-dumping laws block imports that are sold below the cost of production by imposing tariffs that increase the price of these imports to...

Environmental Protection Argument for Restricting Imports

by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy

What is the Environmental Protection Argument for Restricting Imports? The potential for global trade to affect the environment has become controversial. A president of the Sierra Club, an environmental lobbying organization, once wrote: “The consequences of...

Income Payments – Economics

by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy

What are Income Payments? Income payments on assets, as the name implies, is income resulting from ownership of assets – including, interest, dividends, rents, royalties, etc. The third component of the current account balance, labeled “income payments,” refers...

Trade Surplus or Trade Deficit – Which is Better?

by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy

Is it better to have a trade surplus or a trade deficit?  Because flows of trade always involve flows of financial payments, flows of international trade are actually the same as flows of international financial capital. The question of whether trade deficits or...

Balance of Trade vs Balance of Payments

by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy

What is the Balance of Trade as a Balance of Payments? The connection between trade balances and international flows of financial capital is so close that economists sometimes describe the balance of trade as the balance of payments. Each category of the current...
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