Economics Hl Ia

Commentary Number 7* The Mexican government opinionated a twenty percent duty on frozen stump spud products. However the obligation (a tax levied on merchandise goods, either an ad valorem tax, based on function of the hurt, or a specific tax, based on a measured unit such as tones or bottles) was displace to phoebe bird percent and there is a initiative that it could be dropped. The tariff is a type of protectionism (any form of doing taken by a country whereby the ratio of the price of domestic goods to import goods decreases) that the Mexican government is using to debase the import of white potato vine and other goods such as apples, onions, frozen sweet corn. U.S. potato growers have been hardly stirred by the tariff. The effects of the tariff are shown in draw 1.

Diagram 1: reduce in Mexico potato tariff P($) S Price P1 S US + tariff 1 ($) P2 ! S US + tariff 2 P S US D 0 Q3 Q5 Q4 Q Q1 Q2 Q (tons of potatoes) Potatoes (tons) The tariff imposed by the Mexican government lowered the supply (the amount of goods and go that producers are willing and able to sell at heterogeneous possible...If you want to get a full essay, order it on our website: BestEssayCheap.com

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