Exam 7: Global Markets in Action

Canada produces both lumber and wine.Canada exports lumber and imports wine.The rest of the world imports Canadian lumber and exports wine to Canada.If Canada did not trade with the rest of the world,then the equilibrium price of lumber would be ________ in Canada than the rest of the world,and the equilibrium price of wine would be ________ in Canada than the rest of the world.

A tariff ________ the domestic price of the good and an import quota ________ the domestic price of the good.

Refer to the figure below to answer the following questions. The figure shows the market for shirts in Canada, where D is the domestic demand curve and S is the domestic supply curve.The world price is $20 per shirt.Canada imposes a tariff on imported shirts of $4 per shirt. Figure 7.3.1 -Refer to Figure 7.3.1,the tariff ________ the domestic production of shirts in Canada by ________ per year.

Refer to the figure below to answer the following questions. The figure shows the market for helicopters in Canada, where D is the domestic demand curve and S is the domestic supply curve.Canada trades helicopters with the rest of the world at a price of $36 million per helicopter. Figure 7.2.2 -In Figure 7.2.2,Canada ________ helicopters per year.

Refer to the figure below to answer the following question. Figure 7.3.2 -Refer to Figure 7.3.2.The supply of peanuts in Canada is made up of Canadian grown peanuts and imported peanuts.Initially,Canada engages in free trade in the peanut market.Then Canada puts a quota on peanut imports.The graph shows the Canadian market for peanuts when the Canadian government puts a quota on peanut imports.The Canadian consumer surplus that is redistributed to Canadian producers is ________ and the quota creates a deadweight loss equal to ________.

If a quota is set at the same quantity of imports that results from a tariff,

Which of the following are reasons economists consider valid for trade protection? I.Protection penalizes countries that have weak environmental standards. II.Protection limits dumping of low-wage jobs into the domestic economy. III.Protection prevents low-wage jobs in foreign countries from lowering wages in Canada.

Table 7.2.2 -The table shows a country's demand and supply schedules.Based on Table 7.2.2,at what world price would the country export?

A country opens up to trade and becomes an exporter of a good.Consumer surplus ________,producer surplus ________,and total surplus ________.

Refer to the figure below to answer the following questions. The figure shows the market for shirts in Canada, where D is the domestic demand curve and S is the domestic supply curve.The world price is $20 per shirt. Figure 7.2.1 -In Figure 7.2.1,international trade ________ consumer surplus in Canada by ________.

Refer to the figure below to answer the following questions. The figure shows the market for shirts in Canada, where D is the domestic demand curve and S is the domestic supply curve.The world price is $20 per shirt.Canada imposes a tariff on imported shirts of $4 per shirt. Figure 7.3.1 -Refer to Figure 7.3.1,with the tariff Canada imports ________ million shirts per year.

A country opens up to trade.In an export industry,surplus has been redistributed from

Refer to the figure below to answer the following questions. The figure shows the market for shirts in Canada, where D is the domestic demand curve and S is the domestic supply curve.The world price is $20 per shirt.Canada imposes a tariff on imported shirts of $4 per shirt. Figure 7.3.1 -Refer to Figure 7.3.1,Canadian producers' ________ from the tariff is ________.

Usually the removal of trade barriers affecting a particular good benefits ________ people domestically,each of whom gains a ________.

Compared to the situation before international trade,after Canada imports a good,production in Canada ________ and consumption in Canada ________.

In one year,Brazil exported more than 1.8 billion kilograms of coffee to the rest of the world.We can conclude that

When Canada exports a good,Canada's consumer surplus ________ and Canada's total surplus ________.

The proposition that protection is necessary to allow an infant industry to grow into a mature industry so that it can compete in world markets is the ________.

The effects of offshoring from opening up call centres in India are similar to the effects from

Offshoring occurs when a firm in Canada