The Table Below Shows the Prices in Canada of One

question 54

Multiple Choice

The table below shows the prices in Canada of one kilogram of cheddar cheese produced in three different countries.Assume that all cheddar cheese is identical. $$\begin{array} { | l | c | c | } \hline \text { Producing Country } & \text { Canadian Price in } \$ & \text { C anadian Price in } \$ \\\hline & \text { Free Trade } & 40 \% \text { Import Tariff } \\\hline \text { Canada } & 10.00 & \\\hline \text { United Kingdom } & 9.00 & \\\hline \text { United States } & 8.00 & \\\hline\end{array}$$ TABLE 34- 1
-Refer to Table 34- 1.Assume there is free trade in cheddar cheese and Canada imports the lowest price cheese from the United States.If a 40% tariff is then imposed on U.S.imports,Canada would be likely to purchase its cheese from .This situation would be one of .

• A)United Kingdom; trade creation
• B)United States; trade diversion
• C)United States; trade creation
• D)United States; free trade
• E)United Kingdom; trade diversion

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Definitions:

Sender's Message

The sender's message is the information or intention that the sender wants to communicate to the receiver, often formulated through language, body language, or other forms of communication.

Minimum Costs

The lowest possible expense incurred in the production of goods or services or in the achievement of a specific action or outcome.

Manager

A person who supports, activates, and is responsible for the work of others.

Immediate Environment

refers to the external factors directly influencing a company's operations and performance, including suppliers, customers, and competition.