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Fact 31.3.2
With free trade between Australia and Canada, Australia would export beef to Canada. But Canada imposes an import quota on Australian beef.
-Refer to Fact 31.3.2. Canadian gains from trade will ________ and Australian gains from trade will ________.
A)increase; decrease
B)decrease; decrease
C)decrease; increase
D)increase; increase
E)not change; not change

Question

Quizplus · Accepted Answer

Canadian gains from trade will decrease because the import quota limits the amount of beef that can be imported, reducing the benefits of trade. Australian gains from trade will also decrease because the quota restricts their ability to export beef to Canada, limiting their market access and potential profits.

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