Tariffs, or customs duties, are taxes imposed on foreign goods and services.
In addition to providing a country with additional revenue, tariffs offer protection to domestic producers. Imported items become more expensive, allowing businesses at home to become more competitive with their pricing.
The national or government debt is a combination of both internal and external debt. The external debt is referred to as Sovereign Debt. Sovereign Debt refers to bonds issued by a nation’s government in a foreign currency and sold to foreign investors.
A zero-coupon bond or ‘no coupon’ bond is one that does not disburse regular interest payments. Instead, the investor buys the bond at a steep discount price; that is, at a price lower than its face value. When the bond matures, the investor receives the principal amount or face value.
Common zero-coupon instruments include U.S.