strategic industry argument- should not become too dependent on other countries to manufacture our necessitieslike oil, military goods, steel. if you there is a world war and you can no longer get imports from that country it can hurt your country
infant industry argument- protect new and vulnerable industries, shelter them from competition
cultural identity argument- need to protect our culture like education and hospitals should not be owned or controlled by foreigners. news, tv and radio has to play a certain amount of Canadian content
lower environmental and labour standards: the labour and environmental standards may be eroded as they try to compete with countries whose standards are lower and may as a result have cost advantage.
Dr. Stephanie Powers, "Exchange rate", Intro to Macroeconomics.(Lecture, Donald School of Business, Red Deer Alberta, Winter 2012)
Pros
Cons
- strategic industry argument- should not become too dependent on other countries to manufacture our necessitieslike oil, military goods, steel. if you there is a world war and you can no longer get imports from that country it can hurt your country
- infant industry argument- protect new and vulnerable industries, shelter them from competition
- cultural identity argument- need to protect our culture like education and hospitals should not be owned or controlled by foreigners. news, tv and radio has to play a certain amount of Canadian content
- lower environmental and labour standards: the labour and environmental standards may be eroded as they try to compete with countries whose standards are lower and may as a result have cost advantage.
Dr. Stephanie Powers, "Exchange rate", Intro to Macroeconomics.(Lecture, Donald School of Business, Red Deer Alberta, Winter 2012)