The smaller a country is, the less of an ability it has to export a portion of the burden of an import tariff to other countries.

Question

Quizplus · Accepted Answer

This statement is true. Smaller countries typically have less bargaining power in international trade negotiations and may struggle to export the burden of an import tariff to other countries. They may also be more dependent on imports for certain goods and may have a limited ability to substitute with domestic production. Therefore, smaller countries may feel the full impact of import tariffs on their economy and consumers.

The Smaller a Country Is, the Less of an Ability