Chapter 9 L

Question 0

How are buy Canadian theories similar to the 16th century mercantilism?

Answer 0

because we can buy the car and keep the money in our economy. it’s similar bc the theory was to try and export more than import,
keepin more money in the economy.

Question 1

What would happen from a buy Canadian policy?

Answer 1

Governments end up channeling resources into unproductive sectors, while import barriers protect inefficient industries. additionally, other countries will shut down our trade with them bc it’s not fair for us to restrict them.

also, increasing exports by subsidizing exporters only helps te people we are selling to, in that taxpayers are paying for the cheaper prices.

additionally, if we want to export more, we have to import more bc the countries importing need to be able to trade us Canadian monies.

Question 2

When are restrictions on imports justified?

Answer 2

With dumping and predator pricing.
With dumping tough, must be shown though that material harm has been done to the domestic industry, otherwise not allowed