Impact Of The Integrationseek Your Dream/Tutorialoutletdotcom
FOR MORE CLASSES VISIT www.tutorialoutlet.com 1. Consider a world with two countries-USA and Foreign and a competitive market of sugar in both counties. Foreign is more efficient in the production of sugar and the autarky price of the sugar is lower in Foreign. Describe graphically the equilibrium of sugar when USA and Foreign begin trading. What would be the effect on the sugar price in USA and on the welfare of US if US imposes a (per unit) tariff on sugar import? Argue using a graph taking into consideration that US is a large sugar importing country.
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