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BUSINESS STUDIES

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Farah alsharkas

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Helloo everyone,wish everyone the best of luck.
I have a couple of questions.
Please help me.
1)What is a financial cost?

2)State two methods that can be used to restrict imports into a country?
2b) do you think that such methods benfit the business commnuity of the country imposing the restrictions? Explain your answer?

IM STUCKKK PLEASE HELP!
 
T

topgun

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Farah alsharkas said:
Helloo everyone,wish everyone the best of luck.
I have a couple of questions.
Please help me.
1)What is a financial cost?

2)State two methods that can be used to restrict imports into a country?
2b) do you think that such methods benfit the business commnuity of the country imposing the restrictions? Explain your answer?

IM STUCKKK PLEASE HELP!
Click to expand...
Well I assume the time is late now, yet I can help.
Financial cost is the cost in cash/money (don't quite get what you are trying to ask).

Two ways you can limit the imports are, by placing import tarrifs and quotas.
There is a custom/duty to be paid on what you import, and a legal quantity. For example, if a showroom imports cars, they need to pay 20% of the value of car as import tarrif. And they can NOT import more than 200 cars per year, as per the quota.

This will encourage the local/national businesses to set up/create a wider and more profitable market. Their cars would sell more, which earlier was monopolized by imported cars. This raises the country's business activity, raising it's GDP and even turns to be cheaper as imported cars are more expensive. The government would benefit by more taxes (higher profits and hence more tax). This will have some drawbacks too, though. The same quality and quantity cars couldn't be built in the country, due to lack of resources or potential. The demand may not be met. Production would also increase the pollution in the country. In a different case, the country's natural resources/raw material maybe used up (non-renewable).

Be logical and think wide. If the restrictions are on fruits, you will not be able to get certain fruits which the country isn't able to produce, like mangoes in a cold country. :)
Different scenarios have different advantages and set backs.

Good luck, may Allah be with you.
 
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