Q. To help its firms penetrate Mexico’s radio market suppose the Japanese government provides them a subsidy of $15 for each radio shipped to Mexico As a result of this trade policy ?
a. The price of radios in Mexico equals $60 and its imports equal 30 radios
b. The price of radios in Mexico equals $30 and its imports equal 30 radios
c. The price of radios in Mexico equals $40 and its imports equals 20 radios
d. The price of radios in Mexico equals $20 and its imports equal 40 radios
ANSWER: The price of radios in Mexico equals $30 and its imports equal 30 radios
Answer & Explanation
No explanation is available for this question!