A certain good sold in the Barbados market might be provided by domestic producers, or by producers in Trinidad and Tobago, or by producers in the United States (US), at the prices listed in US dollars: Barbados $1.00; Trinidad and Tobago $0.85; US $0.75. At first, Barbados imposed a 20% ad valorem duty on imports from Trinidad and Tobago and the US. Barbados then entered a customs union with Trinidad and Tobago, using a common external tariff, also of 20%. From which countries would Barbados import the good before the customs union was created, and after the customs union was created?
- Abefore: neither; after: Trinidad and Tobago
- Bbefore: neither; after: US
- Cbefore: US; after: Trinidad and Tobago
- Dbefore: US; after: US