Monday, May 26, 2008

Unit 3: Tariffs in Mexico

The BBC reports that Mexico is to reduce tariffs on food imports

http://news.bbc.co.uk/1/hi/business/7420023.stm

a) Why are Mexico reducing the tariffs?
b) Why do you believe they were imposed originally?
c) Why have they already been eliminated for trade with the USA and Canada
d) Using a S&D diagram, show the effect on Mexican food prices of a reduction in the tariff

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