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Explain using two separate well-labeled graphs for the exporting country under a VER and import tariffs respectively, whether the following statement is true or false.

Explain using two separate well-labeled graphs for the exporting country under a VER and import tariffs respectively, whether the following statement is true or false.

A large exporting country would always be worse-off adopting a VER compared to a tariff imposed by a large importing country on the same good.

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