The main purpose of a tariff is to: protect domestic industry from competition promote greater specialization within industries provide the government with revenue provide revenue to support continued trade. Generally, a nation should probably specialize in those products: in which it has absolute advantage for which its need are greatest for which worldwide demand is high in which it has comparative advantage. Suppose the exchange rate between the United States and Japan changes from $1 = 100 yen to $1 +110 yen. What would happen to the prices of American good in Japan Decrease Increase or Decrease Increase Remain the same. Importing more than exporting is Trade deficit Balance of payment Balance of trade Trade surplus. What is a currency system in which each country tries to keep the value of its currency constant against one another called? Floating currency exchange Flexible exchange rate Constant pricing Fixed exchanged rate.
