How could exchange rate protection of, for example, 10 percent, be duplicated in its effects across export and import-substitute industries by using tariffs and subsidies instead? Explain. Suppose that you are a firm in an import-substitute industry that is currently receiving less protection than most other import-substitute industries. Would you be in favor of scrapping the existing protection framework and adoption of exchange rate protection as an alternative policy? Explain.

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The Answer of How could exchange rate protection of, for example, 10 percent, be duplicated in its effects across export and import-substitute industries by using tariffs and subsidies instead? Explain. Suppose that you are a firm in an import-substitute industry that is currently receiving less protection than most other import-substitute industries. Would you be in favor of scrapping the existing protection framework and adoption of exchange rate protection as an alternative policy? Explain.

How Could Exchange Rate Protection Of, for Example, 10 Percent