What are the barriers to effective performance?

Need some help with a couple questions on Trade Barriers...?

• I need some help answering the following questions dealing with trade barriers. I forgot my textbook at school, and I need to have these questions answered by tomorrow. Any help would be greatly appreciated: 1. Why would provinces set up barriers to prevent trade with each other? 2. How would it benefit consumers if these barriers were removed? 3. How would it benefit businesses and the Canadian economy if these barriers were removed? -Thanks

• Answer:

  1. Provinces set up trade barriers to protect selective industries from foreign imports. They don't have to compete for business. The flip side is that the protected industries become less competitive and their higher prices affect the customers who rely on their products. Lastly, when trade barriers are erected, retaliation ensues and the country that erects the barriers experience shrinking markets for their national production. 2. Theoretically, consumers benefit from open markets because multiple suppliers in an industry have to compete for your purchase. You end up getting the highest quality product for the cheapest price. In some countries, they sell product abroad at a lower price than they sell it at home and impose artificial restrictions on products such as onerous multiple inspections and subsidize their industry. 3. Theoretically, the Canadian economy benefits because it is able to compete in more markets - as long as the free trade is two way.