Ukraine has to decide on a trade policy strategy to go with other reforms for promoting development

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QUESTION:

Ukraine has to decide on a trade-policy strategy to go with other reforms for promoting development. Comment on the merits and drawbacks of the following available choices:

a. Unilaterally taxing its grain exports.

b. Joining a grain cartel with North America, Argentina, and Australia, the other main exporters.

c. Choosing manufactures it could export (e.g., batteries), giving them a profitable home-market base protected by tariffs, and encouraging exports to other countries at competitive world prices.


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