ECO100Y5 Lecture Notes - Lecture 34: Countervailing Duties, Comparative Advantage, Free Trade
53
ECO100Y5 Full Course Notes
Verified Note
53 documents
Document Summary
Free trade can make _______countries__________________ better off on the whole, even though _____________each individual___ may not be better off. This is because free trade allows countries to specialize in those goods in which they have a comparative advantage and _____increase_______ the overall production. Despite the case for free trade, many countries continue to implement certain policies aimed at _____protecting domestic industry______ and ____reducing. Arguments for protectionism: certain arguments used to support protectionism are__valid___ while some are not. Methods of protection: tariffs, or import duty, ex. The canadian government imposes a 10% import tariff on tv s from. If the world price of a tv is , then an importer would pay. to the korean exporter and to the canada revenue agency. This essentially raises the domestic price by the amount of the import duty. ____predatory pricing_____ strategy to drive international competitors out of business: countervailing duties- a tariff imposed by one country to ___offset.
