1.If Germany (which is a large country) imposes an import tariff on textile imports, we can conclude that:

(a)The world price of textile rises, and Germany imports less.

(b)The world price of textile stays constant, and Germany imports less.

(c)The world price of textile falls, and Germany imports less.

(d)The world price of textile stays constant, and Germany imports the same as before.

Explain your answer clearly.

2.Evaluate the following statement:

"Infant-industry protection can be justified on the basis of the existence of learning-by-doing."