Evaluate This Argument for a Trade Barrier: "Canada Needs Protection

Question

Examlex · Accepted Answer

The Answer is The argument is flawed on several grounds.First, Canadian consumers benefit from being able to purchase a product at a lower price than they would have had they had to buy a domestically produced product.Second, Canadian workers earn a high wage because they are productive.Gains from trade are based on comparative advantage, not absolute advantage.Although Canadian labour can produce many goods and services, according to comparative advantage, it should produce those products for which the domestic opportunity cost is the least.If it does so it will earn more income and the nation will have a higher standard of living.Whether foreign labour is cheap is not important.What is important for the nation's standard of living is to use labour resources most productively and efficiently.

Evaluate This Argument for a Trade Barrier: "Canada Needs Protection

Essay

Correct Answer:
Verified

Evaluate This Argument for a Trade Barrier: "Canada Needs Protection

Essay

Correct Answer:VerifiedShow Answer

Correct Answer:
Verified