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Which is a likely outcome and might serve as an argument against the imposition of a tariff on a country from which we import manufacturing
Which is a likely outcome and might serve as an argument against the imposition of a tariff on a country from which we import manufacturing goods because that country can produce them at a lower cost than our domestic manufacturers of that good?
- The country on which we imposed the tariffs will still be able to export the same quantities of that good to us.
- Our domestic manufacturers will benefit, create jobs, and our economy will be larger than if we had not imposed that tariff.
- Another country that can also produce that good at a lower price than our domestic manufacturers will replace the country on which we imposed tariffs and will export (almost) the same amount of the good to us.
- We will increase our total surplus since revenues will be generated from the tariff.
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