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

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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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