Suppose That American Firms Claim That Protectionism in Canada Is

Multiple Choice

Suppose that American firms claim that protectionism in Canada is on the rise as the Canadian government attempts to protect its infant industries with a "Buy Canadian" provision, in which all government contracts require the use of Canadian-made products. This policy is likely to cause

A) exporting countries to retaliate by placing trade barriers on their imports from Canada.
B) Canadian manufacturers to become more efficient.
C) Canadian companies to pay lower prices for protected products.
D) most countries to reduce their own trade barriers to be able to better compete with Canadian imports at home.