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There is international trade and capital flows between U.S and Italy. U.S. exports soft drinks to France and imports wine from Italy. If the U.S.

There is international trade and capital flows between U.S and Italy. U.S. exports soft drinks to France and imports wine from Italy. If the U.S. imposes large tariffs on the Italy wine, explain the likely impact on the values of the U.S. beverage firms, U.S. wine producers, the Italy beverage firms, and the Italy wine producers.

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