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The following graph depicts a large country that imports goods. P * is the international price. PH and PF are home price and foreign price
The following graph depicts a large country that imports goods. P is the international price. PH and PF are home price and foreign price for the same commodity when home is open. The difference between these two prices is exactly the import tariff imposed by the home country. Compared with the closed economy, when engaged in free trade, home countrys producer surplus changes by
The following graph depicts a large country that imports goods. P is the international price. PH and PF are home price and foreign price for the same commodity when home is open. The difference between these two prices is exactly the import tariff imposed by the home country. Compared with the closed economy, when engaged in free trade, home countrys producer surplus changes by
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