Question

Canada has voluntarily reduced its exports of Canadian steel to Japan. Which of the following would have a similar effect on the quantity imported and the price paid for Canadian steel by Japanese producers?(1 point)
Responses

Japan implements an import quota on Canadian steel.
Japan implements an import quota on Canadian steel.

Canada implements a tariff on Japanese steel.
Canada implements a tariff on Japanese steel.

Canada implements an export subsidy on Canadian steel.
Canada implements an export subsidy on Canadian steel.

Japan implements a voluntary export restraint on Japanese steel.

Answer 1

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.**

An import quota would limit the quantity of Canadian steel that can be imported into Japan, similar to a voluntary reduction in exports by Canada, which would also restrict the supply of Canadian steel in the Japanese market. This would likely lead to an increase in the price of Canadian steel due to the limited supply.

The other options would affect the market differently and would not have the same effects as Canada's voluntary reduction of exports.