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  • Suppose That Upon Poland S Entering The European Union It Is

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    Miroslav Gegoski
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    Upon Poland joining the EU, it was discovered that automobile production costs were €20,000 in Poland but €30,000 in Germany. The EU has a customs tariff on automobiles imported from outside the EU. The scenarios examine whether Poland joining the EU would result in trade creation or diversion based on different tariff rates and production costs in Japan.

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    Suppose That Upon Poland s Entering the European Union It Is

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    Suppose That Upon Poland s Entering the European Union It Is

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    Upon Poland joining the EU, it was discovered that automobile production costs were €20,000 in Poland but €30,000 in Germany. The EU has a customs tariff on automobiles imported from outside the EU. The scenarios examine whether Poland joining the EU would result in trade creation or diversion based on different tariff rates and production costs in Japan.

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    © All Rights Reserved
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    22 views1 page

    Suppose That Upon Poland S Entering The European Union It Is

    Uploaded by

    Miroslav Gegoski
    Upon Poland joining the EU, it was discovered that automobile production costs were €20,000 in Poland but €30,000 in Germany. The EU has a customs tariff on automobiles imported from outside the EU. The scenarios examine whether Poland joining the EU would result in trade creation or diversion based on different tariff rates and production costs in Japan.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    Suppose that upon Poland s entering the European Union

    it is #9443
    Suppose that upon Poland s entering the European Union it is

    Suppose that upon Poland’s entering the European Union, it is discovered that the cost of
    automobile production in Poland is €20,000 while it is €30,000 in Germany. Suppose that the
    EU, which has a customs union, has an X percent tariff on automobiles and that the costs of
    production are equal to Y (valued in euros) in Japan. Comment on whether the addition of
    Poland to the European Union would result in trade creation or trade diversion under the
    following scenarios:
    a. X = 50% and Y = €18,000
    b. X = 100% and Y = €18,000
    c. X = 100% and Y = €12,000

    Suppose that upon Poland s entering the European Union it is

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