The country Messu Potami is a key exporter of steel.

CIMA BA1 Question Answer

The country Messu Potami is a key exporter of steel. However, its prominence as a steel exporter is partially due to its manipulating of exchange rates by buying large amounts of other countries' currencies.

How best can neighbouring countries prevent the cheap exports produced by Messu Potami from affecting their own domestic markets?

Impose a fixed tariff on imports coming from Messu Potami

Impose an embargo on imports coming from Messu Potami

Negotiate a VERA which would restrict the amount of Messu Potamian products entering these countries' domestic markets

Provide a subsidy to markets directly competing with Messu Potamian exports to eliminate any unfair competition

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The country Messu Potami is a key exporter of steel.

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