Suppose Canada Implements New Border Procedures That Require Goods Arriving

question 100

Multiple Choice

Suppose Canada implements new border procedures that require goods arriving from Country X to be held for 60 days in a bonded warehouse.This new policy is ________ and is likely to ________.

• A)a voluntary export restriction; reduce imports from Country X
• B)an example of trade diversion; increase imports from Country X
• C)a non-tariff barrier; reduce imports from Country X
• D)a non-tariff barrier; drive down the price of imports from Country X
• E)an example of an anti-dumping measure; reduce exports from Country X

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Definitions:

Federal Government

The national government of a federal country, which holds the authority over matters that affect the country as a whole.

Horizontal Equity

The principle that individuals with similar incomes or circumstances should be taxed at the same rate.

Demographic Trends

Patterns in the composition of a population over time, such as age, race, gender distribution, which can influence various aspects of societal behavior and policy.

Government's Budget Deficit

A situation where a government spends more than it earns in revenue over a specific period.