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a. True
b. False

2007-03-22 17:02:51 · 2 answers · asked by investing1987 3 in Social Science Economics

sorry it got cut off consumers in the importing countries

2007-03-22 17:16:58 · update #1

2 answers

In a two country world an export subsidy on all industries would increase trade but the same effect could be achieved by a shift in the exchange rates. Since increase in trade improves the welfare of consumers, the importing countries consumers would benefit in either case. The net welfare gains from trade of the exporting countries consumers would be the same as with a shift of exchange rates, but the distribution of the gains among its citizens would be different, and dependent on who paid the taxes.

2007-03-22 19:07:12 · answer #1 · answered by meg 7 · 0 0

need details on what you mean by "cons". Convicts? Constituents, con artists? What?

Ah, consumers...not necessarily. If they are luxury good, or goods available at lesser prices somewhere else, then they are simply helping the people in their own country. Never so easy as yes or no in areas like this.

2007-03-22 17:18:16 · answer #2 · answered by Anonymous · 0 0

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