Chapter 8 - International trade policy
free trade = maximizes consumer welfare; may cost jobs; may cost industries; may affect wages and industry profitability.
Things that can be used to generate a high tariff:
- If you have lots of people employed
- very few firms in the market
- regionally concentrated
- If the item is component in a larger item
- No comparative advantage
most favored nation – fast track agreement
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Last modified at 4/6/2008 6:03 PM by scott phillips
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