International economics question. Please answer it by picture... Thanks! Suppose

Question

International economics question. Please answer it by picture... Thanks!

Suppose Germany, a large country, imposes a tariff on tuna imports. Before the tariff, all the countries in the world are engaged in free trade in tuna. Determine whether each statement below is true of false, then briefly explain why. The German consumers pay a higher price for tuna. The German producers receive a higher price for tuna. The world price of tuna increases. The tariff makes Vietnam, a tuna exporting country, worse off. Vietnamese tuna consumers suffer because of the tariff.

Explanation / Answer

True. Germans will have to pay higher price due to tariff imposed. True. Price of the competitor is already high so German produers can also increase price of tuna marginally. False. World price is determined by international Demand and Supply. True because of tariff, Demand of tuna will decrease in German which will decrease their export earnings. False. Vietnamesse consumers will be benefitted beause now Tuna In Vietnam will be in abundant supply.

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