Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 14 Mar 2018 My Price 3.00

free-trade area

Homeland is about to join Furrinerland in a free-trade area. Before the union, Homeland imports 10 million DVD recorders from the outside-world market at $100 and adds a tariff of $30 on each recorder. It takes $110 to produce each DVD recorder in Furrinerland.

a. Once the free-trade area is formed, what will be the cost to Homeland of the DVD recorder trade diverted to Furrinerland?

b. How much extra imports would have to be demanded by Homeland to offset this trade-diversion cost?

 

Answers

Maurice Tutor
(5)
Status NEW Posted 14 Mar 2018 02:03 PM My Price 3.00

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