Week 7 - Notes - Tariff paid by the consumers...

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Week 7 – Notes Canada is US #1 partner in export/import because of proximity, distance, culture, language; Mexico is #2; China is #3. Small vs. big countries o Consumers pay more in small countries o The domestic producers will benefit (bad for foreign producers) o Large countries able to change the price by decreasing the price o The country that want to sell to large countries will have to pay the tariffs The tariff is paid by the producers (Backward-shifting)
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Unformatted text preview: Tariff paid by the consumers (Forward-shifting) The more we sell we will be able to decrease prices More free trade leads to integration and less politics Increase in protectionism, increase in tariffs Outweigh benefits and costs to impose a tariff Free trade area removes all barriers inside a region Uruguay round changed GATT to the WTO...
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