Suppose Canada Has a 20% Tariff on the Import of Carpets,and

question 91

Multiple Choice

Suppose Canada has a 20% tariff on the import of carpets,and Canada currently imports this product from India at a with-tariff price of $22.The with-tariff price of identical carpets from the United States is $24.Now suppose a free-trade agreement with the U.S.eliminates the tariff and so the no-tariff price from the U.S.is $20.Canada now purchases carpets from the U.S.This is an example of

• A)dumping.
• B)trade diversion.
• C)a countervailing duty.
• D)trade creation.
• E)specialization.

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Definitions:

Optimal Experience

Also known as flow, it refers to a state of immersion and engagement in activities where skills balance the challenges, often leading to personal fulfillment.

Unique Experience

An event or situation that is rare, extraordinary, or significant in a personal way, distinguishing it from common occurrences.

Umwelt

In Binswanger’s phenomenological analysis, biological experience such as the sensations a person feels of being a live animal.

Eigenwelt

A term used in existential psychology referring to the internal, personal world of an individual; how one perceives and interprets one's own existence.