Suppose Canada imposes high tariffs on Japanese automobiles. The intention is to make autos produced in Japan so expensive for Canadians to buy that they choose instead to purchase autos

constructed in Canada. Advocates of the policy contend this will create new employment in

Canada. Assuming the Bank of Canada maintains a flexible exchange rate, will this trade policy

prove effective? Explain thoroughly. What if the Bank of Canada maintains a fixed exchange rate, how would be your answer? Explain thoroughly.