If a "large" country levies a tariff on imports it cannot improve the terms at which it trades with other countries.

Question

Quizplus · Accepted Answer

This statement is false. A large country may be able to use tariffs strategically to improve its terms of trade by exerting market power and potentially persuading other countries to lower their own tariffs or offer more favorable terms. However, there are also potential negative effects of tariffs, such as retaliation from other countries and reduced efficiency in the domestic economy.

If a "Large" Country Levies a Tariff on Imports It