A country whose imports of a product constitute a very small portion of the world market supply of that product is a price taker.Thus, this country faces a constant world price for the imports of this product.

Question

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If a country's imports of a product constitute a very small portion of the world market supply of that product, the country is not large enough to affect the global market price, and therefore cannot influence it. As a result, the country has to accept the prevailing global market price and is considered a price taker.

A Country Whose Imports of a Product Constitute a Very