Assuming no other changes in tariffs by other governments, if a country's government removes a tariff on imported goods, that country's current account balance will likely be enhanced.
If agricultural tariffs were eliminated or trade costs were decreased, global agricultural trade might expand. When tariffs are eliminated, resources may be redirected from the production of potentially inefficient goods to the manufacture of more productive ones.
The U.S. manufacturing sector would import more manufactured goods by nearly 4.5 percent if tariffs on imported goods were removed because doing so would make them less expensive. As a result, imports in all other industries would generally decrease by less than 0.5 percent.
While free trade zones may have a common external tariff if they are customs unions, they will not have tariffs amongst their member states. Boost specialization and reap the rewards of economies of scale.
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