In the large-country case, an export tax

Name: In the large-country case, an export tax
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In the large-country case, an export tax leads to an increase in the price of the good in the importing country because the larger country has market power and can affect the world price of the good through its export policies. The export tax reduces the supply of the good in the world market, driving up its price, and ultimately leading consumers in the importing country to pay more for the good.

In the Large-Country Case, an Export Tax