Parson's Pet Products, an Australian firm, ships many products to Canada. In order to take advantage of low trade barriers in the U.S., Parson's Pet Products ships its items first to the U.S. and then reexports the goods to Canada. Parson's Pet Products is most likely using ________.

Question

Quizplus · Accepted Answer

Parson's Pet Products is using trade deflection, which involves shipping goods through a third country in order to take advantage of lower trade barriers or tariffs. In this case, they are shipping products to the U.S. first before reexporting them to Canada to bypass any potential Canadian trade barriers. This allows them to save money on tariffs and taxes and increase profitability.

Parson's Pet Products, an Australian Firm, Ships Many Products to Canada