Group items tagged

In order to protect its domestic industries from European subsidized-sugar, Canada places high duties (tariffs) on imported sugar. This article details how local firms are benefiting due to a ruling that allows these trade barriers. While consumers would benefit from free trade because they can purchase sugar at a low price, it would have a harmful effect on domestic firms, which is why protectionist measures are put in place.

This article demonstrates the concept of equilibrium by pointing out that there is a shortage of sugar in Europe because the EU is trying to shrink the sugar industry. The shortage of sugar means there's excess demand; the supply is insufficient because of certain trade barriers and import duties. 

This article discusses the current issue in the United States when it comes to the price controls for sugar. Not only has it cost a lot of people their jobs, it is also eliminating the possibility for the growth of more jobs. And the problem isn't just with the jobs...the price control for sugar has caused an increase inprice in many goods that use to make their products...such as breakfast cereal....so even thought the price control is meant as a normative economic action...it may negatively impact the market.