Until recently, no single nation could claim exclusive jurisdiction over fishing except within a narrow band of 12 miles from its coast. Now this band is expanded to 200 miles, subject to negotiations.
a) What effect do you expect this extension of the exclusive fishing zone to have on the world price of fish in the short and long run? Why? Explain using a diagram(s). What effect do you expect it to have on the incomes of Canadian fishers in the short and long run? Explain
b) Would you expect world consumption of fish to rise or fall in the short run? In the long run? Why?
c) Why do you think nations did not try to enforce a wider ban - say 50 miles - 100 years ago?