Question

In: Economics

Use the following terms to explain how the IMF manipulated Jamaica’s agricultural economy: tariff, devalue, exports,...

Use the following terms to explain how the IMF manipulated Jamaica’s agricultural economy: tariff, devalue, exports, imports.

Solutions

Expert Solution

Jamaica's economy is agriculture based and required support of IMF for growth and development. The IMF gave assurance of support in terms of job creation, poverty alleviation and improving lives of the people in Jamaica. For this, IMF asked Jamaica to follow programs that started with the removal of import tariff and let foreign MNCs come and operate in Jamaica, it will create jobs and people' purchasing power will rise. The program also encouraged Jamaica to increase its own export of agricultural products such as Sugar, banana, cocoa and Coffee. But for that, it required to devalue the currency so that it could compete in international market. It increased the trade deficit as imports were also increased. It led Jamaica to go back to IMF again and asked for the next round of funding. It made IMF to completely control the economy of Jamaica as per its own agenda and brought huge manipulation.


Related Solutions

Use the following terms to explain how Mexico’s economy has benefitted from NAFTA: import tariffs, Wranglers,...
Use the following terms to explain how Mexico’s economy has benefitted from NAFTA: import tariffs, Wranglers, beer, Michoacan
Explain, the effects of a tariff in a large vs. a small importing economy.
Explain, the effects of a tariff in a large vs. a small importing economy.
Suppose that instead of tariff, a quota is imposed, explain the disadvantages in terms of government...
Suppose that instead of tariff, a quota is imposed, explain the disadvantages in terms of government revenue, and consumer welfare.
How Covid-19 has affected the global economy According to IMF, the global economy is expected to...
How Covid-19 has affected the global economy According to IMF, the global economy is expected to shrink by over 3 per cent in 2020 – the steepest slowdown since the Great Depression of the 1930s. Amid the coronavirus pandemic, several countries across the world resorted to lockdowns to “flatten the curve” of the infection. These lockdowns meant confining millions of citizens to their homes, shutting down businesses and ceasing almost all economic activity. According to the International Monetary Fund (IMF),...
Explain how net exports affect the U.S. economy. Describe both negative and positive impacts on GDP....
Explain how net exports affect the U.S. economy. Describe both negative and positive impacts on GDP. Why do national income accountants use net exports to compare GDP, rather than simply adding exports to the other expenditure components of GDP?
Explain specifically how negative net exports affect aggregate expenditures in the private, open economy and equilibrium...
Explain specifically how negative net exports affect aggregate expenditures in the private, open economy and equilibrium GDP. Explain specifically how positive net exports affect aggregate expenditures in the private, open economy and equilibrium GDP. Be sure to explain how the graph of aggregate expenditures is impacted by each situation along with the size of the change in equilibrium GDP relative to the size of the change in aggregate expenditures.
Write a comparative study on pre and post covid situations in indian economy. Use the IMF,...
Write a comparative study on pre and post covid situations in indian economy. Use the IMF, world bank and national policy makers' data.
How do inflation and unemployment affect the economy in terms of growth (use U.S. as an...
How do inflation and unemployment affect the economy in terms of growth (use U.S. as an example)? Conduct research from viable and credible sources such as, and not limited to, economic journals, periodicals, books, databases, and websites. This assignment should be submitted/uploaded via BC Online on the date the assignment is due. Any late assignment will be subject to a letter grade reduction unless an extension has been negotiated with the professor prior to the due date. In this written...
Use the following terms to explain how Caribbean populations/economies are in a "global process of divergence"...
Use the following terms to explain how Caribbean populations/economies are in a "global process of divergence" and on a "path of convergence": gap, international demonstration effect, consumption, tourists.
Explain the general equilibrium analysis of a Tariff in large country by the use of the...
Explain the general equilibrium analysis of a Tariff in large country by the use of the free trade offer curves: a) Illustrate the effects of tariff in a large country b) What is the meaning of the optimum tariff and retaliation
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT