In the Barbados market, a given good could be supplied either by domestic producers, by producers in Trinidad & Tobago, or by producers in the USA, at the prices listed in US dollars. (Barbados $1.00; Trinidad & Tobago $0.85; USA $0.75). At first, Barbados imposed a 20% ad valorem duty on imports coming from Trinidad & Tobago and the USA. Barbados later entered into a customs union with Trinidad & Tobago, together with a common external tariff, which was also 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 & Tobago
- Bbefore: neither; after: USA
- Cbefore: USA; after: Trinidad & Tobago
- Dbefore: USA; after: USA