Suppose Canada would like to decrease the amount of lumber brought into the country from other countries. What trade policy should Canada enact to accomplish this goal?
A) increase tariffs on lumber imports
B) decrease tariffs on lumber imports
C) increase quota on lumber imports
D) decrease quota on lumber exports

Question

Quizplus · Accepted Answer

By increasing tariffs on lumber imports, it would make it more expensive for businesses to import lumber from other countries, making Canadian lumber more competitive and desirable. This would incentivize businesses to purchase lumber from within Canada instead.

Suppose Canada Would Like to Decrease the Amount of Lumber