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When Can a Country Gain a Price Advantage on Imports

Question 132

Multiple Choice

When can a country gain a price advantage on imports by imposing a tariff?


A) when it is the largest country with absolute advantage in all goods 
B) when it has a comparative advantage in the production of all goods 
C) when it can do so without other countries retaliating with tariffs 
D) when trade agreements prohibit quotas but permit tariffs

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