Redraw Fig 17 7 to show that the Home country subsidy could make the Foreign Country better off Welfare effects on foreign are shown in Fig 17 7 The increased production by home means that it captures a larger share of the world market The demand curve facing the foreign firm shifts left at each price of X The foreign firm will reduce production, moving to a point like B mm 11 1 The price ratio has fallen to p' as in home so consumers in F import X to arrive at he consumption bundle C

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Redraw Fig  17 7 to show that the Home country subsidy could make the Foreign Country better off  Welfare effects on foreign are shown in Fig 17 7 The increased production by home means that it captures a larger share of the world market  The demand curve facing the foreign firm shifts left at each price of X  The foreign firm will reduce production, moving to a point like B  mm 11 1 The price ratio has fallen to p' as in home so consumers in F import X to arrive at he consumption bundle C

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Redraw Fig. 17.7 to show that the Home country subsidy could make the Foreign Country better off.

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Income Tax Fundamentals 2013

Redraw Fig. 17.7 to show that the Home country subsidy could make the Foreign Country better off.

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Income Tax Fundamentals 2013

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