To determine which of the options would have a similar effect on the quantity imported and the price paid for Canadian steel by Japanese producers, we need to analyze the impact of each scenario.
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Canada implements a tariff on Japanese steel: This would likely increase the price of Japanese steel in Canada and could reduce the quantity of Japanese steel imported into Canada. However, it would not directly affect the quantity or price of Canadian steel imported by Japan.
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Canada implements an export subsidy on Canadian steel: An export subsidy would generally lower the price of Canadian steel internationally and encourage increased exports, rather than reducing them. This would not have a similar effect as the initial scenario.
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Japan implements an import quota on Canadian steel: An import quota would limit the quantity of Canadian steel that can be imported into Japan. This would directly reduce the quantity of Canadian steel available in Japan and could increase the price due to the limited supply, mirroring the effect of Canada voluntarily reducing its exports.
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Japan implements a voluntary export restraint on Japanese steel: This would involve Japan voluntarily limiting its own steel exports, which doesn't have a direct effect on the imports of Canadian steel.
Given this analysis, the option that would have a similar effect on the quantity imported and the price paid for Canadian steel by Japanese producers is:
Japan implements an import quota on Canadian steel.
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