International trade: If Germany (which is a large country) imposes an import tariff on textile imports, we can conclude that: (a)The world price of textile rises, and Germany imports less. (b)The world price of textile stays constant, and Germany imports less. (c)The world price of textile falls, and Germany imports less. (d)The world price of textile stays constant, and Germany imports the same as before.
International trade: If Germany (which is a large country) imposes an import tariff on textile imports, we can conclude that: (a)The world price of textile rises, and Germany imports less. (b)The world price of textile stays constant, and Germany imports less. (c)The world price of textile falls, and Germany imports less. (d)The world price of textile stays constant, and Germany imports the same as before.
Chapter21: International Trade And Finance
Section: Chapter Questions
Problem 6SQ
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International trade:
If Germany (which is a large country) imposes an import tariff on textile imports, we can conclude that:
(a)The world price of textile rises, and Germany imports less.
(b)The world price of textile stays constant, and Germany imports less.
(c)The world price of textile falls, and Germany imports less.
(d)The world price of textile stays constant, and Germany imports the same as before.
Explain your answer clearly. Limit your explanation to 200 words.
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