The Global Economy Unit Test

Question

14 of 1814 of 18 Items

Question
If the United States and Canada enter into a trade deal that allows Canada to trade oil to the U.S. and the U.S. to trade auto parts to Canada, who will benefit and who will be at a disadvantage from this deal?(1 point)
Responses

Consumers in both countries will benefit. Oil producers in Canada and auto part manufacturers in the U.S. will benefit. Oil producers in the U.S. and auto part manufacturers in Canada will be at a disadvantage.
Consumers in both countries will benefit. Oil producers in Canada and auto part manufacturers in the U.S. will benefit. Oil producers in the U.S. and auto part manufacturers in Canada will be at a disadvantage.

The governments of both countries will benefit. Oil producers in Canada and auto part manufacturers in the U.S. will benefit. Oil producers in the U.S. and auto part manufacturers in Canada will be at a disadvantage.
The governments of both countries will benefit. Oil producers in Canada and auto part manufacturers in the U.S. will benefit. Oil producers in the U.S. and auto part manufacturers in Canada will be at a disadvantage.

Consumers in both countries will benefit. Oil producers in the U.S. and auto part manufacturers in Canada will benefit. Oil producers in Canada and auto part manufacturers in the U.S. will be at a disadvantage.
Consumers in both countries will benefit. Oil producers in the U.S. and auto part manufacturers in Canada will benefit. Oil producers in Canada and auto part manufacturers in the U.S. will be at a disadvantage.

The governments of both countries will benefit. Oil producers in the U.S. and auto part manufacturers in Canada will benefit. Oil producers in Canada and auto part manufacturers in the U.S. will be at a disadvantage.
The governments of both countries will benefit. Oil producers in the U.S. and auto part manufacturers in Canada will benefit. Oil producers in Canada and auto part manufacturers in the U.S. will be at a disadvantage.

Answer 1

In the scenario where the United States and Canada enter into a trade deal allowing Canada to trade oil to the U.S. and the U.S. to trade auto parts to Canada, the following outcomes are expected:

• Consumers in both countries will benefit from potentially lower prices and increased variety of goods.
• Oil producers in Canada and auto part manufacturers in the U.S. will benefit from the trade agreement, as they can sell their products to a larger market.
• Conversely, oil producers in the U.S. and auto part manufacturers in Canada will be at a disadvantage because they will face more competition from Canadian oil and U.S. auto parts.

Therefore, the correct response is:

Consumers in both countries will benefit. Oil producers in Canada and auto part manufacturers in the U.S. will benefit. Oil producers in the U.S. and auto part manufacturers in Canada will be at a disadvantage.