Suppose that the autarky prices of commodity X in Nations A, B, and C are the same

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Suppose that the autarky prices of commodity X in Nations A, B, and C are the same as in Problem 1, and that Nation A is too small to affect prices in Nations B and C by trading. If Nation A initially imposes a nondiscriminatory ad valorem tariff of 50 percent (rather than 100 percent) on imports of commodity X from Nations B and C, will Nation A produce commodity X domestically or import it from Nation B or Nation C?
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International Economics

ISBN: 978-1119915737

11th edition

Authors: Dominick Salvatore

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