Neco Model Questions Vol1 2021 Government Question 42
Practice objective / multiple choice question 42 from the 2021 Neco Model Questions Vol1 Government examination.
Country A and Country B impose reciprocal tariffs. Country A places a \(15\%\) tariff on all imports from Country B, while Country B places a \(10\%\) tariff on all imports from Country A. Before the tariffs, Country A exported goods worth \(\$200\) million to Country B and imported goods worth \(\$150\) million from Country B. After the tariffs, export volumes from A to B fall by \(20\%\) and import volumes from B to A fall by \(10\%\). Assuming the tariffs are applied to the post‑reduction trade values, what is the net change in Country A's trade balance (exports minus imports) expressed in millions of dollars?
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About This Question
This is Neco Model Questions Vol1 2021 Government Question 42. It is one of the objective questions from the 2021 Neco Model Questions Vol1 Government examination.
Difficulty level: Hard .
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