Suppose a country announces that it is moving toward free trade by reducing its tariffs on intermediate inputs used by its production sector, while at the same time maintaining its tariffs on final goods. Does this policy change really move the country toward "freer trade"? Explain why or why not.
3 answers
Please explain what you mean by "intermediate inputs."
I am not sure, but I think it means goods and services used as inputs into the production process. Does that help?
Yes.
http://stats.oecd.org/glossary/detail.asp?ID=1395
I don't think this country is moving toward freer trade because it still imposes tariffs on final goods.
What does your text say?
http://stats.oecd.org/glossary/detail.asp?ID=1395
I don't think this country is moving toward freer trade because it still imposes tariffs on final goods.
What does your text say?
0 answers