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A Country Can Impose a Tariff to Improve Its Own

Question 50

Multiple Choice

A country can impose a tariff to improve its own terms of trade if it


A) constitutes a large fraction of the world demand for some commodity that it imports.
B) has a significant trade surplus.
C) has a high level of industrial diversification.
D) produces and exports a large fraction of the world's supply of some commodity.
E) imports mostly primary products.

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