We talked in an earlier lecture about how taxes can reduce gains from trade. Now we’re going to look at the same set
of questions in the context of international trade. Suppose we have a country like France, and France has been able
to increase economic value by importing a product, pomelos, in which it lacks comparative advantage. Let’s suppose
now the pomelo growers of France get together and decide that they want to have their market protected and lobby
the government to impose a tariff on the import of pomelos from abroad. What would happen to the market for
pomelos if this tariff were imposed, and what would happen to the total amount of economic value if this tariff were, in
fact, enacted?