MICROECONOMICS EXAM Q & A
1. Coexistence of Multiple provincial regulations
Canada faces coexistence of multiple provincial regulations. Trucks are prevented from
efficiently transferring goods nationwide. Ranging from the sizes and weights of vehicles
allowed on the highway to the types of tires, trucks crossing across provincial lines going
from legal to illegal. This cripples Canadian industry's productivity as it adds unnecessary
costs to the transportation.
Provincial Trade Barriers Shoot Canadians in the Foot. Frontier Centre For
Public Policy https://fcpp.org/2019/10/22/provincial-trade-barriers-shoot-
canadians-in-the-foot/
2. Regulatory and administrative barriers
Divergent set of rules and processes between provinces that have created a tyranny of
small differences for businesses. A lot of paperwork is associated with different workers'
compensation boards or the varying rules across health and safety boards when moving
employees across provincial lines.
Senate of Canada - Interprovincial trade barriers are a national embarrassment: Senators
Cordy,
Bellemare. Senate of Canada
https://sencanada.ca/en/sencaplus/opinion/interprovincial-trade-barriers-are-a-national-
embarrass ment-senators-cordy-bellemare/
3. Provincial or territorial laws
These laws restrict distribution and sales of alcohol to customers in other provinces. While
the federal government is abolishing the requirement that all alcohol crossing provincial
boundaries go through a federal liquor authority.
, MICROECONOMICS EXAM Q & A
Federal government moves to lift its final barrier to interprovincial alcohol sales. National
Post https://nationalpost.com/news/politics/ottawa-moves-to-lift-alcohol-trade-restrictions-
urges-provinc es-to-do-the-same
4. Provincial protectionism
Canada has been stuck with forgone internal trade due to misguided provincial
protectionism. The country has arrived at a point where foreign countries have better
access to portions of Canada than Canadian companies themselves.
Provincial Trade Barriers Shoot Canadians in the Foot. Frontier Centre For
Public Policy https://fcpp.org/2019/10/22/provincial-trade-barriers-shoot-
canadians-in-the-foot/
5. Evolution of Canada's interprovincial integration
In the 1980s, each sum total of interprovincial trade and international trade (exports and
imports combined) equally represented 55 per cent of total GDP. While the latter boomed to
80 per cent following the 1994 North American Free Trade Agreement, the former dropped
to less than 40 per cent in the 1990s,l, and has remained there through 2017.
Canada should look inward first on free trade. http://winnipegfreepress.com/
https://www.winnipegfreepress.com/opinion/analysis/canada-should-look-inward-first-on-
free-trade
-565265162.html
Short Response
1.. Consider each of the following statements; is it TRUE or FALSE? You do not need to explain
1. Coexistence of Multiple provincial regulations
Canada faces coexistence of multiple provincial regulations. Trucks are prevented from
efficiently transferring goods nationwide. Ranging from the sizes and weights of vehicles
allowed on the highway to the types of tires, trucks crossing across provincial lines going
from legal to illegal. This cripples Canadian industry's productivity as it adds unnecessary
costs to the transportation.
Provincial Trade Barriers Shoot Canadians in the Foot. Frontier Centre For
Public Policy https://fcpp.org/2019/10/22/provincial-trade-barriers-shoot-
canadians-in-the-foot/
2. Regulatory and administrative barriers
Divergent set of rules and processes between provinces that have created a tyranny of
small differences for businesses. A lot of paperwork is associated with different workers'
compensation boards or the varying rules across health and safety boards when moving
employees across provincial lines.
Senate of Canada - Interprovincial trade barriers are a national embarrassment: Senators
Cordy,
Bellemare. Senate of Canada
https://sencanada.ca/en/sencaplus/opinion/interprovincial-trade-barriers-are-a-national-
embarrass ment-senators-cordy-bellemare/
3. Provincial or territorial laws
These laws restrict distribution and sales of alcohol to customers in other provinces. While
the federal government is abolishing the requirement that all alcohol crossing provincial
boundaries go through a federal liquor authority.
, MICROECONOMICS EXAM Q & A
Federal government moves to lift its final barrier to interprovincial alcohol sales. National
Post https://nationalpost.com/news/politics/ottawa-moves-to-lift-alcohol-trade-restrictions-
urges-provinc es-to-do-the-same
4. Provincial protectionism
Canada has been stuck with forgone internal trade due to misguided provincial
protectionism. The country has arrived at a point where foreign countries have better
access to portions of Canada than Canadian companies themselves.
Provincial Trade Barriers Shoot Canadians in the Foot. Frontier Centre For
Public Policy https://fcpp.org/2019/10/22/provincial-trade-barriers-shoot-
canadians-in-the-foot/
5. Evolution of Canada's interprovincial integration
In the 1980s, each sum total of interprovincial trade and international trade (exports and
imports combined) equally represented 55 per cent of total GDP. While the latter boomed to
80 per cent following the 1994 North American Free Trade Agreement, the former dropped
to less than 40 per cent in the 1990s,l, and has remained there through 2017.
Canada should look inward first on free trade. http://winnipegfreepress.com/
https://www.winnipegfreepress.com/opinion/analysis/canada-should-look-inward-first-on-
free-trade
-565265162.html
Short Response
1.. Consider each of the following statements; is it TRUE or FALSE? You do not need to explain
