Question

SPAIN: 1.How does the government influence trade? What kind of instruments does it use to limit...

SPAIN:

1.How does the government influence trade? What kind of instruments does it use to limit trade ? (e.g. tariffs, subsidies, import quotas.) Do they encourage or restrict foreign direct investments? How?

2.Is spain a member of any trade agreement ? When did it join ? What was the goal of the trade agreement? (e.g. tariff reduction goals) Has the trade agreement helped or hurt the economic development of the country?

Homework Answers

Answer #1

Answer 1

Government influences trade by policies such as tariffs, import quotas, export quota, giving subsidies, voluntary export restraint, local legislation, license etc. By applying these policies government influence the trading of goods and services in the international market. These policies either can enhance or contract the trade. To limit trade government uses policies such as import quota, tariffs, voluntary export restraint. Limiting trade can make the MNC’s invest directly in the country. If the country makes imports more expensive then the company would likely invest directly in the country and trade goods at a rate by which they can make larger profits. So limiting trade should encourage foreign direct investment.   

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Is spain a member of any trade agreement ? When did it join ? What was...
Is spain a member of any trade agreement ? When did it join ? What was the goal of the trade agreement? (e.g. tariff reduction goals) Has the trade agreement helped or hurt the economic development of the country?
1. What are the requirements for successful price discrimination? Does this type of dry cleaning qualify?...
1. What are the requirements for successful price discrimination? Does this type of dry cleaning qualify? 2. What are other examples of price discrimination? 3. The effectiveness of price discrimination is a different question than whether businesses should be able to discriminate by price. Is this an issue that deserves regulation, or is it best left to the market? Why Women Pay More From dry cleaning to haircuts, women often pay more than men due to gender pricing. Find out...
Gender Bias in the Executive Suite Worldwide The Grant Thornton International Business Report (IBR) has described...
Gender Bias in the Executive Suite Worldwide The Grant Thornton International Business Report (IBR) has described itself as "a quarterly survey of business leaders from across the globe … surveying 11,500 businesses in 40 economies across the globe on an annual basis." 1 According to the 2011 IBR, the Asia Pacific region had a higher percentage (27 percent) of female chief executive officers (CEOs) than Europe and North America. Japan is the only Asia Pacific region exception. The report further...
Sign In INNOVATION Deep Change: How Operational Innovation Can Transform Your Company by Michael Hammer From...
Sign In INNOVATION Deep Change: How Operational Innovation Can Transform Your Company by Michael Hammer From the April 2004 Issue Save Share 8.95 In 1991, Progressive Insurance, an automobile insurer based in Mayfield Village, Ohio, had approximately $1.3 billion in sales. By 2002, that figure had grown to $9.5 billion. What fashionable strategies did Progressive employ to achieve sevenfold growth in just over a decade? Was it positioned in a high-growth industry? Hardly. Auto insurance is a mature, 100-year-old industry...
Please answer the following Case analysis questions 1-How is New Balance performing compared to its primary...
Please answer the following Case analysis questions 1-How is New Balance performing compared to its primary rivals? How will the acquisition of Reebok by Adidas impact the structure of the athletic shoe industry? Is this likely to be favorable or unfavorable for New Balance? 2- What issues does New Balance management need to address? 3-What recommendations would you make to New Balance Management? What does New Balance need to do to continue to be successful? Should management continue to invest...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT