Why does globalization set constraints on governments' capacity to raise the revenues?
Due to globalization, the economies of the different nations are interconnected with each other. It makes government to sensibly act and form policies, as it has the impact upon the policies framed by the other governments, foreign exchange rate of the domestic currency and aggregate demand of the economy. Raising revenue for deficit financing also increases the debt burden and economy suffers. It makes government to raise revenue, but in a limited capacity and Judiciously. For example, a government cannot apply tariff barriers on imported goods to raise revenue, because other nations will also retaliate and international trade relations will be spoiled. Hence, government cannot raise revenue, with application of tariff. Further, the government cannot raise revenue by printing currencies, because it will devalue the domestic currency and exchange rate will fall w.r.t. other currencies. It will make worsening of the BOP. Besides, government cannot apply excessive tax as it will decrease the demand due to decrease in disposable income. It will bring slow down in economy and tax collection will also decrease.
Above examples show that raising revenue by the government is now limited in globalization era and only legitimate and sensible ways are there to increase the revenue by the government.
Why does globalization set constraints on governments' capacity to raise the revenues?
Why do most economists worry about the US current deficit? Why does globalization set constraints on governments' capacity to raise the revenues? Explain the IMF moral hazard theory.
In Australia, the Federal and State governments can raise funds by issuing bonds， please explain in detail why they invest these bond.
What is globalization and why does it matter to companies? Please cite at least one reference to support your findings.
14. Why does Kotz define this era as neoliberal as opposed to financialization or globalization while incorporating both into his analysis of neoliberalism?
Is global health something that happens “over there” or near you, too? Explain. Why does globalization matter for public health? What’s the role of global capital? Can you find examples of it at work in your lives?
If trade is so beneficial, why do so many national governments enforce protectionist policies? What opportunity does this provide for economists? The demand for agricultural commodities are both own-price inelastic and income inelastic. What do each of these elasticities measure? How can they be used to explain variations in total revenues for farmers?
Why does replacing a hub with a switch improve an Ethernet users capacity?
1. Why do governments prefer to avoid excessive current account surpluses? Or, why are growing domestic claims to foreign wealth ever a problem? 2. What are the main objectives of IMF? What is IMF conditionality? How does IMF promote flexibility in external balance adjustment?
Why does an employer need to set goals ?
Colorado legalized the recreational use of marijuana in 2014 to raise revenues through sales and excise taxes. In Denver, 1/8 ounce of marijuana costing $30 had about $8 in various taxes added on. Assuming the elasticity of demand for marijuana of -0.7, determine the percentage change in quantity that would result from a price increase of $8. Under what circumstances would prices rise by less than the full amount of a tax? How does the price elasticity of demand affect...