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

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If Canada imposes a tariff on imported goods from a low-wage foreign country, it would increase the Canadian price of the imported good. Tariffs are taxes imposed on imported products and are usually passed on to consumers in the form of higher prices. As Canada is a small economy with no market power, it cannot dictate the terms of trade or equalize the costs of production between the two countries. Since the foreign country pays low wages, the cost of production is also low. As a result, the price of imported goods is low. By imposing a tariff, Canada is trying to create a level playing field for its domestic producers. However, this will increase the price of imported goods and make them less competitive in the Canadian market.

For Most Products,Canada Is a Small Economy with No Market