In 1983, New Zealand had 16 car assembly plants. These plants were protected from international competition by very high tariffs. These tariffs were later removed. Assuming that New Zealand is a price taker in the automobile market, explain the welfare changes that occurred after the tariffs were removed. Identify the winners and losers of the policy.

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The Answer of In 1983, New Zealand had 16 car assembly plants. These plants were protected from international competition by very high tariffs. These tariffs were later removed. Assuming that New Zealand is a price taker in the automobile market, explain the welfare changes that occurred after the tariffs were removed. Identify the winners and losers of the policy.

In 1983, New Zealand Had 16 Car Assembly Plants