Find gains-losses to canadian consumers canadian producers


Assume that Canada imports 1 million pairs of shoes from China and none from Mexico. A 50% tariff is added by Canada, so the price of the shoes in Canada is $30 per pair. As a result of NAFTA, Canada imports 1.2 million pairs of shoes from Mexico at a cost of $25 per pair and imports no shoes from China. What are the gains and losses to Canadian consumers, Canadian producers, the Canadian government and the whole world?

Request for Solution File

Ask an Expert for Answer!!
Microeconomics: Find gains-losses to canadian consumers canadian producers
Reference No:- TGS0522686

Expected delivery within 24 Hours