Abstract
In our analysis of trade policy in Chapters 10 and 11 we learned that when the domestic factor and commodity markets are working under fully competitive conditions then in general the use of trade policy will reduce welfare. The only exception is the use of an appropriate tariff (or export tax) when the country is large enough to affect the prices at which it trades with the rest of the world.
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© 1994 Bo Södersten and Geoffey Reed
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Södersten, B., Reed, G. (1994). Trade Policy and Distortions in Domestic Markets. In: International Economics. Palgrave, London. https://doi.org/10.1007/978-1-349-15030-4_12
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DOI: https://doi.org/10.1007/978-1-349-15030-4_12
Publisher Name: Palgrave, London
Print ISBN: 978-0-333-76365-0
Online ISBN: 978-1-349-15030-4
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