Suppose that Colombia imports cars from Australia. The free market price is $9,200.00 per car. If the tariff on imports in Colombia is initially 38%, Colombians pay per car. One of the accomplishments of the Uruguay Round that took place between 1986 and 1993 was significant across-the-board tariff cuts for industrial countries, as well as many developing countries. Suppose that as a result of the Uruguay Round, Colombia reduces its import tariffs to 19%. Assuming the price of cars is still $9,200.00 per car, consumers now pay the price of $ Based on the calculations and the scenarios presented, the Uruguay Round most likely in Australia. per car. in Colombia and

Suppose that Colombia imports cars from Australia. The free market price is $9,200.00 per car. If the tariff on imports in Colombia is initially 38%, Colombians pay per car. One of the accomplishments of the Uruguay Round that took place between 1986 and 1993 was significant across-the-board tariff cuts for industrial countries, as well as many developing countries. Suppose that as a result of the Uruguay Round, Colombia reduces its import tariffs to 19%. Assuming the price of cars is still $9,200.00 per car, consumers now pay the price of $ Based on the calculations and the scenarios presented, the Uruguay Round most likely in Australia. per car. in Colombia and

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter18: International Trade And Finance

Section: Chapter Questions

Problem 18SQ

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Concept explainers

Comparative Advantage and Absolute Advantage Analysis

The theory of absolute advantage was given by Adam Smith in the year 1776.

Question

3. Winners and losers from tariff reductions
Suppose that Colombia imports cars from Australia. The free market price is $9,200.00 per car.
If the tariff on imports in Colombia is initially 38%, Colombians pay $
per car.
One of the accomplishments of the Uruguay Round that took place between 1986 and 1993 was significant across-the-board tariff cuts for industrial
countries, as well as many developing countries. Suppose that as a result of the Uruguay Round, Colombia reduces its import tariffs to 19%.
Assuming the price of cars is still $9,200.00 per car, consumers now pay the price of $
Based on the calculations and the scenarios presented, the Uruguay Round most likely
in Australia.
per car.
in Colombia and

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