Suppose the government of Portugal forces all companies operating in Portugal to install good and modern...

Suppose the government of Portugal forces all companies operating in Portugal to install good and modern safety equipment in their factories. The government of Portugal forces all companies to provide safer and more comfortable working conditions for workers in the factories.

How will this affect the exports of Portugal?

Explain your answer.

Expert Solution

if the government of Portugal forces all companies who are operating in Portugal to install good and modern safety equipment in their factories and provide comfortable working conditions for workers in the factory, it will mean that the cost of the production of these companies will be going to increase, but the quality of the products are going to increase, so from a quality perspective, the exports are going to increase.

But when we consider the cost approach, it will mean that these measures of providing the safety equipments and comfortable working condition to the workers will lead to the additional cost to the whole company, and it will be reflected in the sales price as well, so the sales price of the companies will be higher and the product will be costlier than earlier, so the exports will be lower because the prices of products have gone higher.

So from equality perspective, the exports can increase but from a cost-benefit point of view, the exports are going to decrease.

jeff jeffy answered 1 year ago

Question 1: Suppose the government forces everyone to deposit all their cash holdings in a bank...

Question 1: Suppose the government forces everyone to deposit all their cash holdings in a bank account. What will happen to overall money supply in the economy? Use money multiplier model and explain your answer. Question 2: Why did oil prices become negative in the middle of April? Why didn't consumers see negative prices at gas stations? Question 3: The current crisis has reignited the debate about the relative usefulness of fiscal policy and monetary policy in the presence of...

Arguably, limited liability companies (LLCs) are the most modern and efficient business structures for all but...

Arguably, limited liability companies (LLCs) are the most modern and efficient business structures for all but the most complex and far-reaching ventures. This is due in no small part to the flexibility of this method of doing business. It can be structured in any manner that best fits the needs of the entrepreneurs. Please compare and contrast LLCs with corporations, highlighting the benefits/negatives of each for the small to moderate-sized business. Also, include consideration of subchapter S corporations in your...

Suppose that the government imposes a $1 tax on a good that currently sells for a...

Suppose that the government imposes a $1 tax on a good that currently sells for a price of $5. Also, assume that after the tax is imposed, the good sells for $5.60. Which statement best explains the effect this has on the tax burden? a. The tax burden is being passed on to buyers. b. The tax burden is being carried by sellers. c. The tax burden is being shared between buyers and sellers. d. The tax burden is precisely...

Suppose the government imposed an excise tax of $1 per unit on a good. Suppose further...

Suppose the government imposed an excise tax of $1 per unit on a good. Suppose further that the price elasticity of demand for the good is 2 and the price elasticity of supply for it is 3. 1.) What percentage of the tax will be borne by the buyers? 2.) What percentage of the tax will be borne by the sellers? 3.) The price buyers pay for the good after the tax is levied will be _____ than the price...

) You are still a government official. But now suppose you are taxing a good with...

) You are still a government official. But now suppose you are taxing a good with elastic supply such as Uber drivers. a)Who will end of paying much of the tax – the consumers or the drivers?b)Why might imposing a tax on Uber drivers raise far less revenue than anticipated?

When the government places a tax on a good and all else is held constant, which...

When the government places a tax on a good and all else is held constant, which of the following would most likely happen? The price the buyer pays for the good decreases, assuming the good does not have a horizontal demand curve. The price and quantity adjust back to the competitive market equilibrium point. The overall consumption of the good decreases, assuming the good does not have a vertical demand curve. The supply curve shifts to...

1. How is a decision by a government regulator that all companies must separately disclose, in...

1. How is a decision by a government regulator that all companies must separately disclose, in their annual financial reports, the amount of expense incurred in relation to the training of employees and that the companies must also spend at 5% of their reported profits on training employees related to the Public Interest Theory?

1. A decision is made by a government regulator that all companies must separately disclose, in...

1. A decision is made by a government regulator that all companies must separately disclose, in their annual financial reports, the amount of expense incurred in relation to the training of employees and that the companies must also spend at 5% of their reported profits on training employees related to the Public Interest Theory. Explain the decision made by the government regulator in above in terms of the Economic Interest Group Theory of regulation.

32. Suppose the government was operating a balanced budget in the year 2025. The next year,...

32. Suppose the government was operating a balanced budget in the year 2025. The next year, in 2026, the government cut taxes by $20 billion. Part 1: After the tax cut is implemented, what is the impact on public saving? Using an equation or model, explain your answer. Part 2: Assume that all consumers believe the tax cut is going to be matched by a tax increase in the near future. As such, consumers save the full proceeds of the...

1.Suppose that in the next federal budget, the government decides to eliminate all (government) purchases that...

1.Suppose that in the next federal budget, the government decides to eliminate all (government) purchases that are financed by borrowing because the politicians worry about a budget deficit. What is wrong with this argument? Briefly discuss using the loanable fund market.

Question