Tariff - shortage , which causes the price of the good to...

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17:50 tariff  is a tax put on goods imported from abroad. The effect of a tariff is to  raise the price of the imported product. It helps domestic producers of similar  products to sell them at higher prices. The money received from the tariff is  collected by the domestic government. quota  is a limit on the amount of goods that can be imported. Putting a quota  on a good creates a 
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Unformatted text preview: shortage , which causes the price of the good to rise and allows domestic producers to raise their prices and to expand their production. An improvement in the terms of trade mean that export prices are increasing faster than import price. Therefore there will be a fall in exports and an increase in quantity of imports. 17:50 17:50...
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Tariff - shortage , which causes the price of the good to...

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