If Germany (which is a large country) imposes an import tariff on textile imports, we can conclude that: (a) The world price of textile rises, and Germany imports less (b) The world price of textile stays constant, and Germany imports less (c) The world price of textile falls, and Germany imports less (d) The world price of textile stays constant, and Germany imports the same as before
If Germany (which is a large country) imposes an import tariff on textile imports, we can conclude that: (a) The world price of textile rises, and Germany imports less (b) The world price of textile stays constant, and Germany imports less (c) The world price of textile falls, and Germany imports less (d) The world price of textile stays constant, and Germany imports the same as before
Chapter28: International Trade
Section: Chapter Questions
Problem 10P
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If Germany (which is a large country) imposes an import tariff on textile imports, we can conclude that:
(a) The world price of textile rises, and Germany imports less
(b) The world price of textile stays constant, and Germany imports less
(c) The world price of textile falls, and Germany imports less
(d) The world price of textile stays constant, and Germany imports the same as before
Explain your answer clearly.
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