假定一个国家对出口产品进行补贴,而另一国家对这种产品征收高关税来抵消补贴产生的影响,从而使得后者的产品
Suppose that one country subsidizes its exports and the other country imposes a“countervailing” tariff that offsets its effect,so that in the end relative prices in the second country are unchanged.What happens to the terms of trade? What about welfare in the two countries?
Suppose,on the other hand,that the second country retaliates with an export subsidy of its own.Contrast the result.