Category: Trade Regulations And Industrial Policies

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. Th price of radios in Mexico equals $20 and its imports equal 40 radios