Suppose further that before NAFTA, the United States maintained a tariff of 25% against all calculator imports. Then, under NAFTA, all tariffs between Mexico and the United States are removed, while the tariff against imports from China remains in effect. Assume that the tariff does not affect the world price of calculators. In the following table, indicate which country the United States imported calculators from before NAFTA. Then indicate which country the United States imported calculators from under NAFTA.
Scenario United States Imports from
Mexico China
Before NAFTA
Under NAFTA
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