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Suppose that the United States currently imports 1.0 million pairs of shoes from China at $20 each.

With a 50 percent tariff, the consumer price in the United States is $30.

The price of shoes in Mexico is $25.

Suppose that, as a result of NAFTA, the United States imports 1.2 million pairs of shoes from Mexico and none from China.

What are the gains and losses to U.S. consumers, U.S. producers, the U.S. government, and the world as a whole?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91968637

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