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In: Economics

Suppose a country removes an import tariff. Answer the following questions and show them in one...

Suppose a country removes an import tariff. Answer the following questions and show them in one nice big diagram.

a. What is the effect on imports, exports, and net exports? Explain the reasoning with reference to your diagram.

b. What is the effect on net foreign investment and the exchange rate? Explain the reasoning with reference to your diagram.

c. What is YOUR opinion on tariffs and other restrictions to free trade? Carefully discuss.

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