As long as it is assumed that a nation accounts for a negligible portion of international trade,its levying an import tariff necessarily increases its overall welfare.

Question

Quizplus · Accepted Answer

Levying an import tariff can have negative effects on the overall welfare of a nation, even if it accounts for a negligible portion of international trade. It can lead to higher prices for consumers, reduced competition, retaliation from trading partners, and decreased efficiency in domestic industries. Therefore, it is not necessarily true that a nation's welfare would increase with the imposition of an import tariff.

As Long as It Is Assumed That a Nation Accounts