Question: Suppose that in response to huge job losses in the Canadian textile industry, the Government of Canada imposes a 100 percent tariff on imports of textiles from China.
Explain how the Canadian and Chinese gains from trade will change. Who in Canada will lose and who will gain? Use the following information to work Problems 24 and 25. With free trade between Australia and Canada, Australia would export beef to Canada. But Canada imposes an import quota on Australian beef.