Chapter 9 - Application: International Trade Flashcards
1
Q
Prices
A
Domestic Price is the price of a good within one nation
World Price is the price of a good on a global scale
2
Q
Tariffs for Imports
A
Tariffs increase prices for domestic customers making them less likely to buy the good, this is bad for international sellers because no one buys their good but it is good for domestic sellers because more people will turn to their good instead of the one with a tariff. The tariff also benefits the government.
The tariff is a tax, so there is a deadweight loss.
3
Q
ADD MORE
A
