In 2007, European Union (EU) Negotiators Have Offered to Cut

question 206

Multiple Choice

In 2007, European Union (EU) negotiators have offered to cut tariffs for Latin American bananas to avoid "banana wars". What are the effects of a cut in tariffs?

• A) Tariff revenue will increase
• B) The quantity of bananas produced in the EU (such as in France and Spain) will increase
• C) The price of bananas for consumers will increase
• D) The quantity of bananas imported into the EU will increase

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