Tariff small importing country

[klem]

Hi,

I am doing my economics commentary and I was wondering about the tariff diagram:

For a small importing country 'A' that has a trade agreement with a large country 'B' to eliminate tariffs on country B's exports to country A, how would you draw the tariff diagram?

For the Sw curve would you instead denote it as S_{country B}? And would the curve be perfectly elastic for the Supply-curve if country B is a "large" country?

Thanks so much for any help! All input is appreciated. 

 

[King112]

Hey,

So this is a rather interesting question. I see two ways to answer it.

(A) You make the assumption that S _countryB  is perfectly inelastic, as there are a lot of competitors for export. Personally, I like this way of answering it. Just shift the tariff line out altogether.

(B) You draw a regular Supply curve and shift it out. This would, however, be a bit trickier to draw. 

 

Hope this makes sense (and that I understood your question)

[klem]

Thank you so much. However, now I have another much simpler question for you if you have time:

Let's say there are two small countries (e.g. Norway and Zimbabwe). Norway decides to eliminate a tariff that it had previously placed on coffee that it imports from Zimbabwe. How would you draw the diagram for what takes place - and specifically, how would you draw/label Zimbabwe's supply curve for coffee in this diagram?

All help is appreciated. 

[King112]

Well, honestly,  I would just repeat the standard Tariff removal diagram (i.e, the inelastic supply moves down).

I don't see any major difference tbh haha