Imports
Assume that Canada imports 1 million pairs of shoes from China and none from Mexico. A 50% tariff is added by Canada, so the price of the shoes in Canada is $30 per pair. As a result of NAFTA, Canada imports 1.2 million pairs of shoes from Mexico at a cost of $25 per pair and imports no shoes from China. What are the gains and losses to Canadian consumers, Canadian producers, the Canadian government and the whole world?
200 word minimum
(2012). International economics. (Vol. 1, pp. 273-276). The McGraw-Hills Companies.
In-text citation
(International economics, 2012)
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