Over the past decade, many American candy companies, including Hershey Company, Brach's Confections, and Ferrara Pan Candy, opened factories in Mexico and Canada to produce candy that is then shipped back to the United States for sale. Although lower wages in Mexico might explain part of this move, wages in Canada are comparable to U.S. wages.

Explain how U.S. price supports (price floors) for the sugar industry may have encouraged these moves.

The sugar industry is the longest protected in U.S. history. Many economists and industry experts argue that these protectionist policies hurt consumers and are no longer needed.

Do you agree? Why or why not? Use the concepts of supply and demand, and consumer and producer surplus to support your answer.

Explain why the U.S. sugar industry have experienced such long protectionist policies such as import quotas and subsidies?