Question

For most products, Canada is a small economy with no market power in the global market....

For most products, Canada is a small economy with no market power in the global market. If Canada imposed a tariff on imported goods from a low-wage foreign country, this would

A.increase the Canadian price of the imported good.

B.reduce the price of the imported good in Canada.

C.improve Canada's terms of trade.

D.equalize the costs of production between the two countries.

E. Increased wages in low-wage foreign countries.

Homework Answers

Answer #2

In the above problem of Canada imposes tariff on Imported Goods from a low wage foreign country

This would increase the Canadian price of imported goods.

Answer Is Option A.) increase the Canadian price of the imported goods.

When a country imposes tariff on imported goods which is type of tax to be paid to the government by the importer when they import the goods from foreign countries. Now the New prices in the country (Canada) will be the total of Previous price+ The tariff imposed by the government.

So the Canadian price of imported goods will increase in Canada.

This policy is generally adopted by the government to discourage imports of any commodity in particular or for all commodities in general.

This is basically done to protect the domestic firms from completion with imported goods and to improve the balance of trade between the countries.

answered by: anonymous
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Which of the following will increase the demand for U.S. products in the international market? a....
Which of the following will increase the demand for U.S. products in the international market? a. A tariff imposed by the U.S. on imported goods b. A depreciation of foreign currency c. A rise in the domestic demand for goods and services d. A depreciation of the U.S. dollar e. An increase in the average price level in the U.S. When estimating GDP, changes in the level of inventory are calculated because: a. it shows the level of business spending...
QUESTION 11 Consider a case where a country imports of very large quantity of Good R...
QUESTION 11 Consider a case where a country imports of very large quantity of Good R and the Terms of Trade Effects Tariff Model holds. When the country changes from trade in Good R without a tariff to trade in Good R with a tariff (assuming no retaliation on that product), a. the total surplus of foreign producer countries falls and the world total surplus falls b. the total surplus of foreign producer countries falls and the world total surplus...
3. Assume that two countries, Home and Foreign, produce two goods: TVs and cars. Use the...
3. Assume that two countries, Home and Foreign, produce two goods: TVs and cars. Use the information below to answer the following questions: In the No-Trade equilibrium: Home Foreign TV sector Car sector TV sector Car sector Wage = 12 Wage = ? Wage* = ? Wage* = 6 MPL = 4 MPL = ? MPL* = ? MPL* = 1 Price = ? Price = 4 P* = 3 P* = ? (Hint: remember the link between price ratios...
1. tariff that has the effect of limiting imports into a small country results in: A....
1. tariff that has the effect of limiting imports into a small country results in: A. a net loss to the exporting country but a net gain for the world. B. a net gain for the importing country and the world. C. no overall change in consumption or the world price of the product that is the subject of the tariff. D. a net loss to the importing country and the world. 2. Tariffs make imports ____________________ in domestic markets...
28) The economics law states that ‘the quantity of a product consumers are willing to buy...
28) The economics law states that ‘the quantity of a product consumers are willing to buy decreases as the market price of the product rises and vice versa”                               a) the consumer surplus                               b) the law of supply and demand                               c) the law of supply                               d) the law of demand 29) Lose in consumer benefit due to a tariff imposed on imported consumer good is called:                               a) Net-welfare gain                               b) Consumer deadweight cost                               c)...
Chapter 5 Import Protection Policy: Import Tariffs I. Chapter Overview 1. Types of import tariffs in...
Chapter 5 Import Protection Policy: Import Tariffs I. Chapter Overview 1. Types of import tariffs in terms of the means of collection in terms of the different tariff rates applied in terms of special purposes for collection 2. The effects of import tariffs concepts of consumers surplus and producers surplus the welfare effects of import tariffs 3. Measurement of import tariffs the "height" of import tariffs nominal versus effective tariff rates II. Chapter Summary 1. The means of collecting import...
just solve the final answer What is the benefit of joining a free trade for a...
just solve the final answer What is the benefit of joining a free trade for a country? a) Improved competitiveness of its economy b) Transfer of technology and knowhow c) Consumption of more and diverse goods and services d) All of the above are benefits Consider two countries, X and Y. The value of export of country X is 300 billion US dollar and its GDP is 600 billion US dollar. The value of export of country Y is 200...
When studying the effects of trade restrictions, what is the defining characteristic of a “small nation”...
When studying the effects of trade restrictions, what is the defining characteristic of a “small nation” relative to a “large nation”? A small nation has lower per capita income than a large nation. A small nation has less land mass than a large nation. The trade policies of a small nation cannot influence the world prices of its imports and exports while the trade policies of a large nation can. all of the above When a large nation imposes an...
Consider two countries J and K. Both of them have equal amount of gross domestic product...
Consider two countries J and K. Both of them have equal amount of gross domestic product (GDP) measured in USA dollars. If the cost of living is cheaper in country K than in country J, which country do you think has a larger GDP in Purchasing Power Parity (PPP) measured in international dollars? a) It is difficult to know this b) Both have still equal GDP PPP c) Country J d) Country K When we say ‘Trade is pro-competition’, what...
Consider a world with two countries, Home and Foreign. Assume there are only two products (industries)...
Consider a world with two countries, Home and Foreign. Assume there are only two products (industries) in the world, Wine and Cloth. The table below lists the productivity of each industry in the two countries. Home has 900 units of labour, and Foreign has 900 units labour as well. Units of Output per Labour Wine Cloth Home Foreign 4 2 4 5 The complete long question contains the following questions. 1. Suppose without trade, Home produces 2000 units of Wine....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT