M06 5.) Using an appropriate diagram, explain who gains and who loses from the induction of a tariff. Paper 2

1.) uses a diagram (tariff), define tariff,  identify stakeholders, identify effect of a tariff on stakeholders (pro or con) 2.) Tariff- a tax place on imported goods to decrease demand by increasing the price of a good to product domestic firms and increase government revenue. 3.) Tariffs A tariff is a tax on imports, which can [...]

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Definitions!

Definitions:   Factor endowments- factors of production specific country to country that affects which goods and services a country is fit to produce.  Specialization- a country that had comparative advantage to produce a good produces only that good and trades to get other goods and services.  Absolute advantage- a country, using the [...]

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