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A-LevelEconomicsInternational economic issues9708/12 · Oct/Nov 2015 · Q211 Mark

A particular good in the Barbados market could be supplied by domestic producers, or producers in Trinidad & Tobago, or producers in the USA, at the prices shown in US dollars. origin of production price Barbados $1.00 Trinidad & Tobago $0.85 USA $0.75 Originally, Barbados had a 20% ad valorem duty on imports from Trinidad & Tobago and the USA. Barbados then formed a customs union with Trinidad & Tobago, with a common external tariff, also of 20%. From which countries would Barbados import the good, before the formation of the customs union and after the formation of the customs union? [Table 21.1]

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Abefore: neither, after: Trinidad & Tobago
Bbefore: neither, after: USA
Cbefore: USA, after: Trinidad & Tobago
Dbefore: USA, after: USA

✓ Correct answer

C: before: USA, after: Trinidad & Tobago

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About this question

Topic
International economic issues, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source
A-Level Economics, Oct/Nov 2015 Paper 1 Variant 2, question 21.

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