Tariffs high tariffs usually lead to black markets and, Econometrics

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Tariffs high tariffs usually lead to black markets and

1. (Reasons for International Specialization)What determines which goods a country should produce and export?

2. (Tariffs) High tariffs usually lead to black markets and smuggling. How is government revenue reduced by such activity? Relate your answer to the graph in Exhibit 5 in this chapter. Does smuggling have any social benefits?

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Econometrics: Tariffs high tariffs usually lead to black markets and

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