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Discuss the domestic producer price of an import-competing

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Reference no: EM131917621

Problem

1. Why can a case be made that the difference between the domestic producer price of an import-competing good and the world price of the good is a reasonable indicator of the amount of domestic interference with free trade in the good?

2. In the early stages of the Kennedy Round of multilateral trade negotiations in the 1960s, U.S. officials claimed that the European Economic Community (EEC) had higher average tariff rates than did the United States, and EEC officials claimed that the United States had higher average tariff rates than did the EEC. It so happened that both claims were correct. How is this possible?

Reference no: EM131917621

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