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Assume a simple two-country world in which Germany exports beer to France and Germany imports wine from France. If Germany imposes large tariffs on French
Assume a simple two-country world in which Germany exports beer to France and Germany imports wine from France. If Germany imposes large tariffs on French wine, how would firm values be impacted?Briefly discuss the impact on German brewers, German winemakers, French brewers, and French winemakers.
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