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 BIG COUNTRY GLASGOW RARE PROMO LIVE LP 1984 BLUE $49.67 Time Remaining: 1d 18h 19m |
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 WILLIAMS Tex Big Tennessee Boone 1032 PROMO $3.60 Time Remaining: 2d 6h 26m |
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Why does a big country gain from a tariff while a small country loses?
This is one of the review questions for my price theory class, but I can't find any info on it in our notes. Anything will help.
Even a big country usually doesn't gain from tariffs. Theory says it can gain from very specific tariffs, but that the tariffs have to keep changing to adapt to the market:
http://www.economyprofessor.com/economictheories/optimal-tariff-theory.php
http://internationalecon.com/Trade/Tch90/T90-9.php
http://www.princeton.edu/~ies/Fall06/LimaoPaper.pdf
http://www.google.com/url?sa=t&source=web&cd=2&ved=0CCUQFjAB&url=http%3A%2F%2Fciteseerx.ist.psu.edu%2Fviewdoc%2Fdownload%3Fdoi%3D10.1.1.153.2792%26rep%3Drep1%26type%3Dpdf&ei=jSLPTdOxOISCsQPvxfDFCw&usg=AFQjCNGbkudhRwVSGdDwKGdZyeEt3rX8Ig
http://homepage.ntu.edu.tw/~tchsu75/documents/slides/policy/20090402_optimal_tariff/main.pdf
Big country