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

Question

Quizplus · Accepted Answer

If Canada imposed a tariff on imported goods from a low-wage foreign country, it would increase the Canadian price of the imported good, making it less competitive compared to domestically produced goods. This would lead to a shift in demand towards domestically produced goods and could potentially improve Canada's terms of trade. However, it would not directly impact wages in the low-wage country or equalize the costs of production between the two countries.

For Most Products, Canada Is a Small Economy with No