When Canada begins importing products from the rest of the world, wages in our import-competing industries will fall.

Question

Quizplus · Accepted Answer

When Canada imports products, it increases competition for domestic producers, which puts downward pressure on wages in import-competing industries. This is because workers in those industries must compete with cheaper labor in other countries, which can lead to decreased bargaining power and lower wages.

When Canada Begins Importing Products from the Rest of the World