By which the nations can support their domestic industries

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In an effort to encourage free trade, imagine that the members of the World Trade Organization agreed to dismantle all tariff protection of domestic industries in their respective countries.

Do you think that such a commitment will necessarily result in freer trade? Are there alternative means by which these nations can support their domestic industries that have the same effects as tariffs? Are there alternative means of supporting local industries that have lower efficiency cost than tariffs? Why do you think that a government might choose to protect its industry using a tariff rather than simply offering a production subsidy?

Reference no: EM13192399

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