Tariff imposed by a Large Country, and International Equilibrium
Автор: Rudrarup Mukherjee, Economics [Faculty RTC]
Загружено: 2020-04-23
Просмотров: 1734
Описание:
If a small country protects its import-competing sector through imposing tariff that increases the price of importable products in the domestic market without affecting the international TOT. Whenever a large country imposes a tariff on a product, the change in volume of trade of that country obviously affects its trading partner and hence there is an effect on the TOT between two countries. This analysis shows how and why an imposition of a tariff by a large country affects terms of trade between two countries.
Suggested Reading: Chacholiades, M. (2012), International Economics, McGraw Hill Education(India), Chapter-5
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