ECON 2610 Lecture 9: Week 9 Notes
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Can be a lot some from each model. Always trying to change the product to differentiate from your competitor: color change even works. Each firm behaves as if it were monopolistic. More sales the lower the price is from your competitor. No 1 firm/country should treat another firm/country differently. Ex: if one country (within wto) makes a trade agreement with another, that same agreement applies to all others: as long as member of wto. Cannot discriminate by making others higher, only able to discriminate by making ours lower: don"t give up sovereignty, but don"t raise tariffs. Wto cant make own policies, the countries do it. If us imports beef from canada, must classify meat the same: prime, choice, select, ntbs non tariff barriers. Ntbs: costs more for a contracting license if not american. Rules for the valuation of goods at customs: may cost 3x more.