Question

Do Canadian consumers benefit from international trade? Why or why not? If Canadian producers succeed in convincing the Canadian government to impose tariffs on the import of a product, would this increase or reduce the gains to Canadian consumers? Use a graph to illustrate.

Answer 1

Answer on Question #38251 - Economics - Microeconomics

Canada imports a lot of goods for consumers, so it benefits from the international trade, as it doesn't produce all the products for consumer needs. But the imposing of the tariffs on the import will reduce the gains to Canadian consumers, as the prices for imported goods will also increase.