Which of the following best explains why Canada and Mexico trade far more with the United States than any other country or trade union? A.The United States has the lowest tariffs in the world. B.Canada and Mexico participate in few other FTAS (like the USMCA) offering preferential trading status. C.The proximity and central location of the United States lower transportation costs and make goods more competitive. D.The United States is always a reliable trading partner of Canada and Mexico.

Which of the following best explains why Canada and Mexico trade far more with the United States than any other country or trade union? A.The United States has the lowest tariffs in the world. B.Canada and Mexico participate in few other FTAS (like the USMCA) offering preferential trading status. C.The proximity and central location of the United States lower transportation costs and make goods more competitive. D.The United States is always a reliable trading partner of Canada and Mexico.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A small country imports T-shirts. With free trade at a world price of $10, domestic production is 10 million T-shirts and domestic consumption is 42 million T-shirts. The country's government now decides to impose a quota to limit T-shirt imports to 20 million per year. With the import quota in place, the domestic price rises to $12 per T- shirt and domestic production rises to 15 million T-shirts per year. The quota on T- shirts causes domestic consumers to A) gain $7 million. B) lose $7 million. C) lose $70 million. D) lose $77 million
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