Microeconomics: Principles, Problems, & Policies, 20th Edition

Published by McGraw-Hill Education
ISBN 10: 0077660811
ISBN 13: 978-0-07766-081-9

Chapter 24 - International Trade - Discussion Questions: 12

Answer

The answer is below.

Work Step by Step

What will happen depends on how high the tariff is. If the tariff is only moderate, it will likely be passed on to consumers, but if the tariff is large enough, it may make foreign companies noncompetitive in that market.
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