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The U.S.—Colombia Trade Promotion Agreement was signed on November 22, 2006, in Washington, D.C. ...

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The U.S.—Colombia Trade Promotion Agreement was signed on November 22, 2006, in Washington, D.C. ...

The U.S.—Colombia Trade Promotion Agreement was signed on November 22, 2006, in Washington, D.C. This comprehensive trade agreement eliminated tariffs and other barriers to goods and services. Currently, no U.S. agricultural exports enjoy tariff-free access to the Colombian market. If the United States has a comparative advantage in agricultural, which of the following is true?
A) Columbian agricultural producers were better off before free trade.
B) Columbia was better off before the international trade.
C) Columbia must have comparative disadvantage in all production.
D) Columbian agricultural consumers were better off before free trade.

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Foundations of Macroeconomics

Edition: 8^th

Authors: Bade, Parkin

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