The 2015 merger of Walgreens Boots Alliance, one of the world's largest pharmaceutical purchasers, is not likely to Multiple Choice see the advantages of manufacturing goods in a particular country erode when that country's currency grows stronger relative to the currencies of the countries where the output is being sold. avoid the effects of fluctuations in exchange rates on the costs of manufacturing goods in a particular country. reduce the significant risks of fluctuating exchange rates to its competitiveness in foreign markets. come under pressure from lower-cost imports if local currency grows weaker in relation to the currencies of the countries where the imported goods are being made. succeed when the currency of the country from which the goods are being exported grows weaker relative to the currencies of the countries that the goods are being exported to.
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This is because a stronger currency can make the goods more expensive for foreign buyers, reducing competitiveness. Show more…
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Based on what we know about the economic impact of tariffs and quotas, which of the following is a historically flawed reason for a government to have restrictive trade policies? When concerns over human rights and the environment are used to increase tariffs. When a country becomes convinced that its trading partners are engaging in dumping or currency manipulation. When the value of the dollar fluctuates compared to foreign currency. When a government has decided that it needs to eliminate a balance of trade deficit with another nation. All of the above. The passage of NAFTA in 1994 led to an increase in exports between the U.S., Canada, and Mexico. As a result, total job creation in each nation increased and wages for American factory workers decreased. This is one reason why economists have not supported President Biden's recent executive order requiring government agencies to "Buy American." The post-World War II period represented the revenue era in U.S. tariff policy. This led to job creation and a healthier economy. 1930 was the year the Smoot-Hawley bill passed.
Akash M.
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Following a long period of slow growth, the government of country X decided to open its economy and reduce trade barriers in order to boost economic growth. This provided the expected impetus to the economy as competition increased and the efficiency of domestic firms improved. A decade after opening the economy, the country's GDP is now growing at an average of 7-8 percent annually. A group of economists claim that the standard of living of the people has improved substantially during this period. They also expect this impressive growth to continue over the next five years. Which of the following, if true, will indicate that the standard of living has actually improved since the economy was opened? A. Discretionary spending by domestic consumers increased during this time. B. The government pegged its currency to a foreign currency three years back. C. Overall exports increased because of a fall in domestic consumption during this period. D. Country X's leading trading partner reported a fall in the standard of living over the last two years. E. High interest rates have attracted a large amount of foreign investment over the last five years.
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