free trade
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Free InquiryTwo large countries currently impose tariffs against each other. Each country would be better off with free trade. Which of the following statements are true?
1. Each country might think ‘if the other country maintains its tariff, we will be better off maintaining our tariff.’
2. Each country may think ‘if the other country unilaterally abolishes its tariff, we may be better off maintaining our tariff.
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