If Country a Lowers Its Tariffs Even If Country B

question 130

Multiple Choice

If country A lowers its tariffs even if country B doesn't,then:

• A)only country A will be at a disadvantage.
• B)both countries will be worse off.
• C)both countries will be better off.
• D)country A will be better off than if it kept tariffs high.
• E)country B is better off if it keeps tariffs high.

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Definitions:

Rates Of Exchange

The value of one currency for the purpose of conversion to another.

Barter System

An exchange system in which goods or services are directly exchanged for other goods or services without the use of money.

Goods

Physical items that are produced for sale on the market, which can satisfy human wants or needs, such as food, clothes, and cars.

Trade

The exchange of goods, services, or both between two or more parties, either within the same country or across international borders.