Consider That in Country A, There Are Some Models of Cars

question 17

Essay

Consider that in country A, there are some models of cars available in the luxury segment produced by the domestic companies. Some more models are available in the same segment in country B as well. Explain with the help of suitable figures how the consumers in both the countries gain if these countries engage in free trade.

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Definitions:

Personal Influence

indicates the effect an individual's characteristics, behaviors, or opinions have on others' attitudes or actions.

Word-of-Mouth

A form of marketing where information about products or services is transmitted from one person to another through verbal or written recommendations.

Countervailing Duties

Tariffs levied on imported goods to offset subsidies made to producers of these goods in their home countries.

General Agreement

A broad contract or understanding between parties that outlines the terms and conditions of their relationship or agreement.