Exam 7: Global Markets in Action

Refer to the figure below to answer the following questions. Figure 7.2.2 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. -In Figure 7.2.2, international trade ________ producer surplus in Canada by ________.

Use the information below to answer the following questions. Fact 7.3.2 With free trade between Australia and Canada, Australia would export beef to Canada. But Canada imposes an import quota on Australian beef. -Refer to Fact 7.3.2.Canadian gains from trade will ________ and Australian gains from trade will ________.

Refer to the figure below to answer the following question. Figure 7.2.4 -Refer to Figure 7.2.4.The graph shows the demand for shoes in Brazil, DB, the supply of shoes produced in Brazil, SB, and the market equilibrium in Brazil when it does not trade internationally.If the world price of a pair of shoes is $20 and Brazil opens up and trades internationally, producer surplus in Brazil ________ and consumer surplus in Brazil ________.

A tariff ________ a deadweight loss and an import quota ________ a deadweight loss.

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

Refer to the figure below to answer the following question. Figure 7.2.3 -Refer to Figure 7.2.3.The graph shows the market for shoes in Canada.The world price of a pair of shoes is $20.With free international trade, Canadian consumer surplus ________ and Canadian producer surplus ________.

Tariffs

Import quotas and tariffs both

Which of the following are valid reasons advanced by almost all economists? Protection

Reducing a tariff ________ the domestic production of the good and ________ the total domestic consumption of the good.

Offshore outsourcing occurs when a firm in Canada

Refer to the figure below to answer the following questions. Figure 7.2.2 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. -In Figure 7.2.2, with international trade, ________ helicopters per year are produced in Canada.

A country moves from a situation of no trade to a situation where it exports a good.Which of the following does not occur in the market for this good in the exporting country?

A country

A tariff imposed by Canada on Japanese cars ________ the price of cars in Canada and ________ the quantity of Japanese cars imported into Canada.

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 a doughnut then Glazeland will produce ________ doughnuts and will ________ doughnuts.

The winners from a tariff on imports are

In industrial countries, there is more reliance on ________ as opposed to ________ for government revenue.

International trade benefits the

If Canada imposes a tariff of $1 per imported shirt, the tariff results in all of the following except it