What will be an impact on the Canadian economy of restricting imports of Brazilian shoes into Canada? How will the Canadian economy be impacted if imports of Brazilian shoes are restricted?

Question

Quizplus · Accepted Answer

Restricting imports of Brazilian shoes into Canada will likely reduce the supply of shoes in the Canadian market. This reduction in supply, without a corresponding decrease in demand, will generally lead to higher prices. Thus, not only will the price of Brazilian shoes increase due to the direct impact of import restrictions (such as tariffs or quotas making them more expensive or less available), but the price of domestically produced shoes is also likely to rise. This is because domestic producers will face less competition from Brazilian shoes, giving them more pricing power in the market.

What Will Be an Impact on the Canadian Economy of Restricting