When Can a Country Gain a Price Advantage on Imports

question 132

Multiple Choice

When can a country gain a price advantage on imports by imposing a tariff?

• A)when it is the largest country with absolute advantage in all goods 
• B)when it has a comparative advantage in the production of all goods 
• C)when it can do so without other countries retaliating with tariffs 
• D)when trade agreements prohibit quotas but permit tariffs

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Definitions:

Managerial Accounting

The practice of analyzing, presenting, and interpreting financial information for internal use by management for decision-making.