MACROECONOMICS 1

4

2

3

1

import goods only

export goods only

import and export goods

import and export service

Act as a engine of growth

Decrease the quality of local goods

Enable countries to obtain benefits from specialization

Decreasing cost through large scale production

Imported tax

Minimum quantity

Physical control

Control exchange rate

To increase employment in the country

To protect young industries

To increase income

To encourage dumping

Absolute advantages

Comparative advantages

Balance of payment surplus

Balance of payment deficit

Balance of current account

Balance of capital and financial account

Overall balance

Increase income of the country

Increase indebtedness

Reduce aggregate demand for goods and services

Through the government intervention

Through demand and supply of the currency

Through private agency