Exam 7: Global Markets in Action

Table 7.3.1 Canada's Market for Widgets Refer to the table below to answer the following questions. -Table 7.3.1 shows the Canadian supply of and demand for widgets.Widgets are available on the world market for $7.Canadian widget producers convince the government to protect the domestic industry from cheap imports.If the Canadian government sets an import quota of 8 million widgets,the resulting price of a widget in Canada will be ________,and domestic production will be ________.

Table 7.1.1 Glazeland's Doughnut Market -Table 7.1.1 shows Glazeland's doughnut market before international trade.Glazeland opens up to international trade.If the world price is $0.40,then Glazeland will produce ________ doughnuts and will ________ doughnuts.

Canada exports athletic coaching services and imports computer tech support.The price of computer tech support in Canada is ________ with international trade than without international trade.As a result of trade in computer tech support,the Canadian producer surplus from computer tech support ________ and the Canadian consumer surplus from computer tech support ________.

A tariff is imposed on imports.Surplus will be redistributed from

Import quotas and tariffs both

The fundamental force that drives international trade is

Table 7.2.1 -The table shows a country's demand and supply schedules.Based on Table 7.2.1,suppose the world price is $4 a unit.The country

An import quota directly restricts ________ and are designed to protect domestic ________.

Consider a country that sells some of its goods as exports.Who does NOT benefit?