Dal why would you join the EU in the first place when it is cheaper to trade with Thailand originally. Surely it is better to draw this diagram with the top two horizontal lines showing EU+T and Thai +T in the middle then the bottom EU-T to show the benefit of trading with the EU
the whole point is that you divert trade from one country, if you removed tariff to show the benefit it would essentially be trade creation rather than diversion.
Because the cost of trading within the EU is cheaper than Thailand with the tariff added but still more expensive than Thailand without the tariff as they aren't as efficient
nice trim + Econplusdal
I am sitting for my exam tomorrow- this was extremely helpful. 🙏
Thankyou so much Sir from INDIA...
Thank you sir. Nice explanation. It is very much helpful for me.
Another king move 😝👑👑
Dal why would you join the EU in the first place when it is cheaper to trade with Thailand originally. Surely it is better to draw this diagram with the top two horizontal lines showing EU+T and Thai +T in the middle then the bottom EU-T to show the benefit of trading with the EU
the whole point is that you divert trade from one country, if you removed tariff to show the benefit it would essentially be trade creation rather than diversion.
Sir why you set the P (eu)price please explain
Because the cost of trading within the EU is cheaper than Thailand with the tariff added but still more expensive than Thailand without the tariff as they aren't as efficient
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