What is difference between an export tax and export subsidy

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Reference no: EM131917628

Problem

1. How does an import quota differ from a tariff? Can the government ever capture the quota rent? If so, how?

2. If you were an import-competing producer in a growing market, which trade instrument would you prefer-a tariff, an import quota, or a subsidy? Why?

3. What is the difference between an export tax and an export subsidy? Which instrument are domestic consumers likely to prefer? Why?

Reference no: EM131917628

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