If Bangladesh is open to international trade in oranges without any restrictions, it will import tons of oranges. (f) Suppose the Bangladeshi government wants to reduce imports to exactly 120 tons of oranges to help domestic producers. A tariff of per ton will achieve this. A tariff set at this level would raise in revenue for the Bangladeshi government. 4. Effects of a tariff on international trade The following graph shows the domestic supply of and demand for oranges in Bangladesh. The world price (Pw) of oranges is $820 per ton and is represented by the horizontal black line. Throughout the question, assume that the amount demanded by any one country does not affect the world price of oranges and that there are no transportation or transaction costs associated with international trade in oranges. Also, assume that domestic suppliers will satisfy domestic demand as much as possible before any exporting or importing takes place. 1220 Domestic Demand Domestic Supply 1170- 1120 1070 1020 970 PRICE (Dollars per ton) 920 870 820 770 720 30 60 90 120 150 180 210 240 270 300 QUANTITY (Tons of oranges)