4. Economists generally favour reductions in trade restrictions. Many policymakers, however, insist that any lowering of Canadian

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4. Economists generally favour reductions in trade restrictions. Many policymakers, however, insist that any lowering of Canadian import restrictions must be accompanied by reductions in other countries' import quotas on Canadian exports. Only in this way,

these policymakers believe, can Canadian exporters benefit from a lowering of Canadian import quotas. Explain how a reduction in import restrictions will benefit exporters even if other countries do not follow Canada's example and reduce their import quotas on Canadian exports.

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Principles Of Macroeconomics

ISBN: 9780176591977

7th Canadian Edition

Authors: N. Mankiw, Ronald Kneebone, Kenneth McKenzie

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