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Can import tariffs and quotas reduce the benefits of trade? Additional data: Absolute Advantage is the ability with which an increased number of goods and
Can import tariffs and quotas reduce the benefits of trade?
Additional data:
Absolute Advantageis the ability with which an increased number of goods and services can be produced and that too at a better quality as compared to competitors whereas,
Comparative Advantagesignifies the ability to manufacture goods or services at a relatively lower opportunity cost.
Tariffs and quotas are restrictive trade policies meant to protect domestic producers, they differ in their ways. Tariff is a tax while quota puts a restriction on the quantity of import.
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