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What is Intra industry trade?
Exports/imports within the same sector even between identical countries.
What are Multinationals?
larger and more efficient than other exporters, which in turn are larger and more efficient than firms operating only in their home market.
What is an Import tariff?
taxes on imports
What is a specific tariff?
A Fixed tariff per imported unit.
What is an Ad valorem duty?
Duty as a proportion of the value of the imported goods. (procentuell tull)
What is an Export subsidy?
A negative tax given on exports.
What is a Specific subsidy
A Subsidy that is a certain amount per unit exported.
What is an Ad valorem?
A Share of the export value.
What is MD?
Import demand = MD
What is XS?
Export Supply = XS
Where do you find world equilibrium?
MD = XS
What would happen if there was trade but no tariffs and export subsidies?
It would be the same price everywhere.
What are the consequences of a tariff For a Large country?
no one wants to sell to home and there is a shortage in supply in home and surplus in foreign. Then Price increase in home and falls in foreign.
Can A Small country influence Pw?
No
What is PT?
Domestic price
