imposition of a tariff improves the terms of trade of the imposing country but reduces its
A)Commodity prices
B)Volume of trade
C)Cost of production
D)None of the above

Question

Quizplus · Accepted Answer

The imposition of a tariff typically reduces the volume of trade for the imposing country because it makes imported goods more expensive, leading to a decrease in the quantity of imports.

Imposition of a Tariff Improves the Terms of Trade of the Imposing