A Foreign Export Subsidy and a Countervailing Duty
(Figure 11.6)
Import-competing Canadian producers lose area v as a result of the lower import price. Press the Canadian production surplus button to display the loss. Canadian users of steel gain area v + w + y + z. Press the Canadian consumer surplus button to see the gain. Canada overall has a net gain from the foreign export subsidy equal to area w + y + z. Press the Canadian net gain button to show this net gain.
Press "Continue" when you are ready to move on. The "Reset" button will clear the graph.
 |