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Assume that before it joined the EU, the UK had to pay a tariff on Granny Smith apples imported from ...

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Assume that before it joined the EU, the UK had to pay a tariff on Granny Smith apples imported from ...

Assume that before it joined the EU, the UK had to pay a tariff on Granny Smith apples imported from France. The UK grows both Cox's apples and Granny Smith apples but it is France that has a comparative advantage in the latter. When the UK joined the EU, one would have expected to see the UK

▸ increase its imports and reduce its production of Granny Smiths.

▸ increase its exports of Granny Smiths and reduce its imports of Cox's.

▸ reduce its imports and increase its production of Granny Smiths.

▸ reduce its exports of Granny Smiths and increase its imports of Cox's.

Textbook

Essential Economics for Business

Edition: 5^th

Authors: Sloman, Jones

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More solutions for this book are available here

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meikunn2565 Author

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3 years ago

Good timing, thanks!

zsc999

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Brilliant ツ

Morgan-C

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Correct

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