Buy custom Trade Deficit
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| Topic: |
Business
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| Number of pages / Number of words: |
5 / 1305 |
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Subsidization, the second means of government protection, allows domestic producers to lower their prices, and to make their goods more attractive in foreign markets. Although the government pays the difference, the amount of exports increase, bringing in increased revenue and helping to decrease the deficit...
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The third method in this scheme is to artificially devalue the dollar. Causing the dollar to be worth less compared to foreign currency has a similar effect to the implementation of tariffs, a weaker dollar means American goods can be exported and sold cheaper, raising the demand for them. Also, the purchasing power that Americans possess lowers, so demand for foreign imports declines...
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