question archive Suppose the Canadian wheat farmer sees relief that he/she can now sell the surplus to the US, but upon closer examination, finds out that the US is dealing with the shortage by importing wheat from France

Suppose the Canadian wheat farmer sees relief that he/she can now sell the surplus to the US, but upon closer examination, finds out that the US is dealing with the shortage by importing wheat from France

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Suppose the Canadian wheat farmer sees relief that he/she can now sell the surplus to the US, but upon closer examination, finds out that the US is dealing with the shortage by importing wheat from France. What measures can the Canadian government take to assist its wheat farmers in selling more of their wheat to the US, despite the situation?

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To help its wheat farmers, Canada can undertake bilateral trade agreements with the United States so that they agree to promote each other's trade; therefore, they could work towards eliminating some trade barriers to encourage more trade. Barriers to trade, such as tariffs and embargoes, are some of the limiting factors to trade, that when eradicated, can offer a strain-free trade transaction.

The Canadian government can also introduce the issuing of grants and subsidies to its wheat farmers to sell their products at fair prices, attract the United States market, and be par with its competitor. Having fairer prices, and producing quality wheat, will give Canada a competitive edge, and the U.S. market may see it profitable to engage in trade with a country that is selling its commodities at fair prices.

Lastly, through its representatives to the U.S. representatives, Canada can carry out marketing so that the other party knows what they have to offer to attract the external market.

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