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Governments can use a tax or duty to be paid on a particular class of imports or exports to help
domestic firms act like a cartel when selling to intemational buyers: only if intermational buyers
have few substitutes for the domestic good. If its unlikely that other govemments would impose
retaliatory tarifs. but there are no actual examples of governments trying to do this. and if all
govemments do this, greater gains are realised by all countries.

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Governments can use a tax or duty to be paid on a particular.pdf

  • 1. Governments can use a tax or duty to be paid on a particular class of imports or exports to help domestic firms act like a cartel when selling to intemational buyers: only if intermational buyers have few substitutes for the domestic good. If its unlikely that other govemments would impose retaliatory tarifs. but there are no actual examples of governments trying to do this. and if all govemments do this, greater gains are realised by all countries.