Assume Canada is trading with a country that has lower costs of production for some good and can therefore sell that good at a lower price.If Canada imposes a tariff large enough to equalize the foreign country's price with ours,then
A) this tariff will eliminate exploitation of Canadian markets.
B) Canada would gain absolute advantage.
C) a "level playing field" will be created.
D) all Canadians would realize an increase in their standard of living.
E) the gains from international specialization would be reduced.
Correct Answer:
Verified
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