Canada and China have significant trade with each other. Which of the following is true? Multiple...

Canada and China have significant trade with each other. Which of the following is true?

Multiple Choice

a. Canada prices increase ⇒ Canada imports increase ⇒ China prices increase.
b. Canada prices decrease ⇒ Canada imports increase ⇒ China prices increase.
c. Canada prices decrease ⇒ Canada exports decrease ⇒ China prices increase.
d. Canada prices increase ⇒ Canada exports increase ⇒ China prices decrease.

Correct answer will get a upvote, just want to double check my answers

Expert Solution

If prices of goods in Canada increase, the competitiveness of imported Chinese goods in Canada increases and thus the demand for imports increases. This increase in import demand in Canada increases the price of Chinese goods.

Therefore, if Canada prices increase => Canada imports increase => China prices increase. Option a is correct.

More over, if prices of Canadian goods increases, the export competitiveness of these goods decreases and thus Canadian exports decreases. Option d is incorrect.

Similarly, if prices of Canadian goods decrease, the competitiveness of imported Chinese goods in Canada decreases and thus the demand for imports decreases. The reduction in import demand in Canada leads to a fall in the prices of Chinese goods.

If Canada prices decrease => Canada imports decrease => Chine prices decrease. Option b is incorrect.

If prices of Canadian goods decrease, the export competitiveness of these goods increases and thus Canadina exports increase. Option c is incorrect.

Ans: a. Canada prices increase ⇒ Canada imports increase ⇒ China prices increase.

Rahul Sunny answered 1 year ago

Have there been any significant changes in Australia's terms of trade with China and Japan? In...

Have there been any significant changes in Australia's terms of trade with China and Japan? In the last 20 years, why? for example?

With the heavy focus on trade with China, it may be surprising to discover that Canada...

With the heavy focus on trade with China, it may be surprising to discover that Canada is the USA’s largest trading partner. Perhaps it is not the amount of trade between the US and China that is such a great concern as much as the growth of the trade, the corresponding imbalances and China’s currency valuations. The yuan renminbi is the official currency of China. It has been historically fixed and controlled by the Chinese government, but that may be...

Which of the following is NOT true of the relaxation of a muscle fiber? Multiple Choice...

Which of the following is NOT true of the relaxation of a muscle fiber? Multiple Choice calcium release channels open allowing Ca to leave SR ATP is needed to fuel the calcium ATPase pumping Ca into SR Ca2+ moves from the sarcoplasm into the sarcoplasmic reticulum (SR) Action potentials must cease

Which of the following statements about trade secrets is true? a) Unlike patents, a trade secret...

Which of the following statements about trade secrets is true? a) Unlike patents, a trade secret cannot last forever. B) Unlike patents, trademarks, and copyrights, there is a federal law that protects trade secrets. c) Very few states have adopted the Uniform Trade Secrets Act. d) Reverse engineering is an illegal way of discovering a trade secret. e) If someone uses lawful means to uncover a secret, then the secret is no longer protected by the secret’s owners. _____ is...

The USA and China are engaged in a trade battle. We have a huge trade surplus...

The USA and China are engaged in a trade battle. We have a huge trade surplus with China ($400 + billion per year). It is a complicated issue. Among the many issues, labor rights, are front and center. China, and other countries, are often accused of exploiting laborers (e.g. low pay, unsafe conditions, child labor, etc.). Please share your brief comments: As Americans, do we have a right to pressure China to improve their labor practices? As a consumer, do...

Based solely on the already realized outcomes of the current “Trade War” with China and other...

Based solely on the already realized outcomes of the current “Trade War” with China and other trade partners (but NOT your individual political views), do you think the U.S. has been served well by the various tariff and non-tariff barriers that have been enacted? In other words, have the recent actions undertaken served to benefit the U.S.’ position in global trade, hurt that position, or have they had no real impact on observable metrics?

Imagine that the trade war between the US and China escalates, and spreads to other nations,...

Imagine that the trade war between the US and China escalates, and spreads to other nations, including Australia. Discuss the potential costs and benefits for the Australian economy (200 word limit).

As you may notice a true trade war between China and the U.S and the same...

As you may notice a true trade war between China and the U.S and the same with the European Union. Could you explain what's going on and how this disorder and disagreement in macro-economic policies will impact the international economy and impact the US economy? explain

Which of the following statements about utilization of a resource is TRUE? Multiple Choice It is...

Which of the following statements about utilization of a resource is TRUE? Multiple Choice It is at its maximum when the flow rate exceeds its capacity It is at its maximum when the flow rate is equal to its capacity. It is at its minimum when the flow rate exceeds its capacity. It is at its minimum when the flow rate is equal to its capacity

Which of the following is true of brand equity? Multiple Choice It is a tangible asset...

Which of the following is true of brand equity? Multiple Choice It is a tangible asset that adds value to a service. It allows the seller to use undifferentiated marketing. It enables the seller to hide product successes from its competition. It is goodwill that results from a favorable impression. It allows the seller to stop all promotional activities and redirect its funds to other areas of operation.

Question