With free trade,the small nation will import all its commodities at what price level?
A)the world market price
B)the domestic price plus the compound tariff
C)the small nation's autarky price
D)the large nation's autarky price

Question

Quizplus · Accepted Answer

With free trade, the small nation will import all its commodities at the world market price, which is determined by the supply and demand of the global market. In free trade, there are no tariffs or trade barriers that restrict the flow of goods between countries, allowing for the market to determine the price of the commodity.

With Free Trade,the Small Nation Will Import All Its Commodities