If country A levies a $10 specific tariff on imports originating from both B and C, country A will import from ?
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Answer: B. 200 units from C
Explanation
Applying an equal specific tariff leaves relative international prices unchanged between trading partners. Country A imports exclusively from the cheaper source nation offering the lower pre tariff price. Country C offers a better pre tariff price, so adding identical tariffs directs all trade there. A specific tariff charges a fixed monetary amount per physical unit of imported merchandise. International trade flows depend heavily on comparative advantage and relative pre trade pricing structures. Tariffs shift domestic supply curves upward, altering import volumes from competing foreign nations.
Customs authorities collect specific tariffs to protect domestic industries while regulating import flows. Trade analysts calculate tariff impacts to predict how importing countries will alter sourcing decisions. Uniform tariff policies prevent discrimination while still protecting domestic manufacturing sectors from shocks. Four hundred units from B ignores the fact that B pre tariff price is uncompetitive. Two hundred units from each ignores the substitution effect caused by relative price differentials. Four hundred units from B and two hundred from C violates basic least cost import principles.
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