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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Imposing a tariff on imported goods from a low-wage foreign country would make it more expensive for Canadians to import goods from that country, reducing the advantages of specialization and trade. This could lead to a less efficient allocation of resources and potentially harm both the Canadian and the foreign economy in the long run. It would not necessarily increase national income in the low-wage country, equalize the costs of production between the two countries, reduce the price of the imported good in Canada, or increase the income of the foreign producer.

For Most Products, Canada Is a Small Economy with No