Question: Suppose HOME removed all tariffs so that it had free trade with all countries.Would Foreign benefit from imposing an export tariff on exports to HOME

 Suppose HOME removed all tariffs so that it had free trade

Suppose HOME removed all tariffs so that it had free trade with all countries.Would Foreign benefit from imposing an export tariff on exports to HOME as retaliation?Explain.

with all countries.Would Foreign benefit from imposing an export tariff on exports

FOREIGN EXCESS SUPPLY A PRICE in HOME with TARIFF B E H C F K G PRICE in ROW HOME EXCESS DEMAND

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