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Business, 04.06.2020 18:00, cookies1164
PLATO: Calc Economic
Country A is a main producer of agricultural goods. In the past three years, farmers in country A have seen their sales drop because consumers have begun to buy cheaper imported produce from country B. Not wanting the income of its farmers to drop, the government of country A imposes a tax on all agricultural imports from country B so that those goods are more expensive, and therefore less attractive, to consumers. The farmers in country A see their incomes begin to rise. Two months later, country B retaliates by levying a tax on all imports from country A. Because the manufacturing firms in country A lose business from the country they export to the most, they are forced to close.
What impact did the tariff that country A imposed on country B have?
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Answers: 1
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PLATO: Calc Economic
Country A is a main producer of agricultural goods. In the past three years, f...
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