ECON 3923 WI01 International Trade Theory 2025 Winter
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If its trade partners do not retaliate, the imposition of an import tariff less than or equal to the optimum tariff by a large nation causes:
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The imposition of an import tariff by a small nation:
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If a small nation increases the tariff on its imported product, its:
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An import quota does all of the following, except:
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A quota
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The imposition of a tariff by the government of a small country on its country's imported products will benefit
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A customs union causes trade diversion when:
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A shift to the right of the demand curve of an imported product by a small country that is subject to a tariff
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If its trade partners do not retaliate, the imposition of an optimum tariff by a large nation:
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A trade-diverting customs union:
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