The table below shows the prices in Canada of one kilogram of cheddar cheese produced in three different countries.Assume that all cheddar cheese is identical. $$\begin{array} { | l | c | c | }
\hline \text { Producing Country } & \text { Canadian Price in } \$ & \text { C anadian Price in } \$ \
\hline & \text { Free Trade } & 40 \% \text { Import Tariff } \
\hline \text { Canada } & 10.00 & \
\hline \text { United Kingdom } & 9.00 & \
\hline \text { United States } & 8.00 & \
\hline
\end{array}$$ TABLE 34- 1
-Suppose the Canadian government began subsidizing wheat farmers by paying them $25 per bushel of wheat produced.According to existing international trade agreements,other countries would be allowed to react to this subsidy by imposing a

Question

The table below shows the prices in Canada of one kilogram of cheddar cheese produced in three different countries.Assume that all cheddar cheese is identical. $$\begin{array} { | l | c | c | } 
\hline \text { Producing Country } & \text { Canadian Price in } \$ & \text { C anadian Price in } \$ \
\hline & \text { Free Trade } & 40 \% \text { Import Tariff } \
\hline \text { Canada } & 10.00 & \
\hline \text { United Kingdom } & 9.00 & \
\hline \text { United States } & 8.00 & \
\hline
\end{array}$$ TABLE 34- 1
-Suppose the Canadian government began subsidizing wheat farmers by paying them $25 per bushel of wheat produced.According to existing international trade agreements,other countries would be allowed to react to this subsidy by imposing a

Quizplus · Accepted Answer

A countervailing duty is a tariff imposed by a country to counteract subsidies provided by another country to its producers, which can distort fair competition.

The Table Below Shows the Prices in Canada of One