Explain the effect of amazons geo-blocking strategy

Reference no: EM133442307

Question: Amazon has been geo-blocking Australian consumers from accessing its international websites since July 1, 2018. This move was in response to changes to Australian tax law which required overseas retailers to collect a 10% Goods and Services Tax (GST) on goods sold to Australian customers.

By using demand and supply diagram, explain the effect of Amazon's geo-blocking strategy on (i)Australian consumers is, (ii) Australian government revenue and (iii) Amazon's profit level (i.e., its surplus).

Reference no: EM133442307

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