Economics · Oct / Nov 2023 · Paper 12 · Question 28
2281Globalisation and trade restrictions
Country X believes that country Y is selling steel at prices below the average cost of production. So, country X imposes a higher tariff on steel imports from country Y. What does country X hope to achieve by imposing this higher tariff?
- Aavoid country X dumping steel in country Y
- Bavoid country Y dumping steel in country X
- Creduce inflation in country X
- Dreduce inflation in country Y
As printed in the paper
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Correct answer: B. avoid country Y dumping steel in country X
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