Asked by Hannah Austin on Jun 26, 2024

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A country's department of trade and commerce decides to regulate imports from a neighboring country in order to curb the exit of large amounts of domestic capital.This is an example of a(n) _____.

A) embargo
B) exchange control
C) quota
D) protective tariff

Exchange Control

Restriction on importation of certain products or against certain companies to reduce trade and expenditures of foreign currency.

Domestic Capital

Financial assets and resources available within a country, including savings and investments, that are used for economic growth.

  • Recognize the approaches nations employ to improve their trade competitiveness.
  • Comprehend the impact of tariffs, quotas, and dumping on policies governing international trade.
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Heather NeubeckerJul 03, 2024
Final Answer :
B
Explanation :
Exchange control is a governmental restriction on the trade of currencies, which can include measures to prevent large amounts of domestic capital from leaving the country. This can be used to regulate imports by controlling how much foreign currency is available for purchasing foreign goods, thereby indirectly controlling the amount of imports.