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Business, 30.07.2019 01:10 mmimay3501

Country a is a main producer of agricultural goods. in the past three years, farmers in country a have seen their sales drop because consumers have begun to buy cheaper imported produce from country b. not wanting the income of its farmers to drop, the government of country a imposes a tax on all agricultural imports from country b so that those goods are more expensive, and therefore less attractive, to consumers. the farmers in country a see their incomes begin to rise. two months later, country b retaliates by levying a tax on all imports from country a. because the manufacturing firms in country a lose business from the country they export to the most, they are forced to close. what impact did the tariff that country a imposed on country b have?

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