Suppose France charges 2 Euros tariff on imports of a particular product. It can domestically produce this product at 8 Euros. There are only 2 other countries that produce this product: Turkey at 7 Euros, and Brazil at 5 Euros. Without any regional integration agreement, France would consume (French/Brazilian/Turkish) products. When it enters into a customs union agreement with Turkey, it would consume (French/Brazilian/Turkish) products. This is (beneficial/harmful) to the economies involved.

Suppose France charges 2 Euros tariff on imports of a particular product. It can domestically produce this product at 8 Euros. There are only 2 other countries that produce this product: Turkey at 7 Euros, and Brazil at 5 Euros. Without any regional integration agreement, France would consume (French/Brazilian/Turkish) products. When it enters into a customs union agreement with Turkey, it would consume (French/Brazilian/Turkish) products. This is (beneficial/harmful) to the economies involved.

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter18: International Trade And Finance

Section: Chapter Questions

Problem 6SQ

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