We appreciate your visit to When a large country levies a tariff on imports this causes the world price of the imported good to change for both the importing country. This page offers clear insights and highlights the essential aspects of the topic. Our goal is to provide a helpful and engaging learning experience. Explore the content and find the answers you need!
Answer :
When a large country levies a tariff on imports, this causes the world price of the imported good to rise: harmful, beneficial.
When a large country imposes a tariff on imports, it raises the price of the imported good in the domestic market. This increase in price occurs because the tariff adds an additional cost to the imported product. As a result, the world price of the imported good rises.Domestic consumers have to pay more for the imported product, which reduces their purchasing power and potentially lowers their welfare.
On the other hand, the impact of the tariff on the foreign exporting country can be seen as beneficial. The higher price resulting from the tariff allows the exporting country to earn more revenue from its exports. The foreign producers may benefit from the tariff by capturing a larger share of the profits.
Learn more about tariff here:
https://brainly.com/question/33578472
#SPJ11
Thanks for taking the time to read When a large country levies a tariff on imports this causes the world price of the imported good to change for both the importing country. We hope the insights shared have been valuable and enhanced your understanding of the topic. Don�t hesitate to browse our website for more informative and engaging content!
- Why do Businesses Exist Why does Starbucks Exist What Service does Starbucks Provide Really what is their product.
- The pattern of numbers below is an arithmetic sequence tex 14 24 34 44 54 ldots tex Which statement describes the recursive function used to..
- Morgan felt the need to streamline Edison Electric What changes did Morgan make.
Rewritten by : Barada
