There are two countries (Country X and Country Y) and two goods(T-shirts and calculators). Country X imports
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There are two countries (Country X and Country Y) and two goods(T-shirts and calculators). Country X imports T-shirts and exports calculators and Country Y exports T-shirts and imports calculators. The diagram on the right depicts the international market forT-shirts. A calculator costs $90.
Under free trade, what is Country X?s terms of trade? (Give numerical answer.)
If Country X imposes a $6 tariff on T- shirts, what are its nonterms of trade? (Give a numerical answer. Assume the price of calculators remains unchanged.) Have Country X?s terms of trade improved or deteriorated?
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