Commentary Number 7* The Mexican government strict a twenty parting duty on hiemal stump spud products. hitherto the obligation (a tax levied on merchandise goods, either an ad valorem tax, based on percentageage of the damage, or a proper(postnominal) tax, based on a measured unit much(prenominal) as tones or bottles) was get down to phoebe bird percent and there is a possible deed that it could be dropped. The tax is a type of protectionism (any form of action taken by a country whereby the ratio of the price of domestic goods to import goods decreases) that the Mexican government is using to write down the import of white spud vine and other goods such as apples, onions, frozen sweet corn. U.S. potato growers have been hardly alter by the tariff. The effects of the tariff are shown in plot 1.
Diagram 1: centralize in Mexico potato tariff P($) S value P1 S US + tariff 1 ($) P2 S US + tariff 2 P S US D 0 Q3 Q5 Q4 Q Q1 Q2 Q (tons of potatoes) Potatoes (tons) The tariff imposed by the Mexican government lower the supply (the amount of goods and go that producers are willing and adapted to sell at non-homogeneous possible...If you want to get a full essay, order it on our website:
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