Dumping
1. What is a tariff?
A tariff is a duty that the government places on importing products. In this case, companies importing bicycles have to pay money which is collected by the domestic government.
2. What do tariffs do?
Tariffs raise the imported product's prices which gives the Canadian manufacturers ability to compete by protecting them against the cheap imports. For instance, the tariffs on the bicycles would lift the cost of the Asian imports which helps the two Quebec manufacturers to compete.
3. Why would the federal government consider a tariff on bicycles?
The federal government would consider a tariff on bicycles since without interference, the low-cost Asian imports would put the Canadian manufacturing companies out of business. If these businesses close, there would be hundreds of people without jobs which would affect the Canadian economy.
4. What is the Canadian International Trade tribunal?
The Canadian International Trade tribunal is an unbiased board that inquires into injury claims about dumping and duty proceedings listed under the 'Special Imports Measures Act'. They investigate trade remedy cases and …show more content…
List the possible economic impact of this new tariff.
The possible economic impact of this new tariff are:
• a reduction in consumer consumption of bicycles
• a revenue increase for the government from the tariff
• a profit increase for the Canadian bicycle industries as a result of reduced competition (short term) and job losses in the future (lower production needs)
• a negative impact for the importing country as the increased price means less of their bicycles are sold
• a reduction in the importing companies' bicycle production
• a decrease in local demand for the importing countries' consumer products since their bicycle industry would lay off workers
• a harmful impact for other Canadian and international businesses since consumers have to save more in order to buy a bicycle which reduces the money spent on other
1. What is a tariff?
A tariff is a duty that the government places on importing products. In this case, companies importing bicycles have to pay money which is collected by the domestic government.
2. What do tariffs do?
Tariffs raise the imported product's prices which gives the Canadian manufacturers ability to compete by protecting them against the cheap imports. For instance, the tariffs on the bicycles would lift the cost of the Asian imports which helps the two Quebec manufacturers to compete.
3. Why would the federal government consider a tariff on bicycles?
The federal government would consider a tariff on bicycles since without interference, the low-cost Asian imports would put the Canadian manufacturing companies out of business. If these businesses close, there would be hundreds of people without jobs which would affect the Canadian economy.
4. What is the Canadian International Trade tribunal?
The Canadian International Trade tribunal is an unbiased board that inquires into injury claims about dumping and duty proceedings listed under the 'Special Imports Measures Act'. They investigate trade remedy cases and …show more content…
List the possible economic impact of this new tariff.
The possible economic impact of this new tariff are:
• a reduction in consumer consumption of bicycles
• a revenue increase for the government from the tariff
• a profit increase for the Canadian bicycle industries as a result of reduced competition (short term) and job losses in the future (lower production needs)
• a negative impact for the importing country as the increased price means less of their bicycles are sold
• a reduction in the importing companies' bicycle production
• a decrease in local demand for the importing countries' consumer products since their bicycle industry would lay off workers
• a harmful impact for other Canadian and international businesses since consumers have to save more in order to buy a bicycle which reduces the money spent on other