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Question: South Korea to Resume Canadian Beef Imports South Korea will reopen its market to most Canadian beef. South Korea banned imports of beef in 2003 amid concerns over a case of mad cow disease. The ban closed what was then the fourth-largest market for Canadian beef, valued at $50 million a year.
Assuming that South Korea is the only importer of Canadian beef, explain how South Korea's ban on beef imports affected beef producers and consumers in Canada. Draw a graph of the market for beef in Canada to show how this ban changes Canadian consumer surplus and producer surplus from beef and creates deadweight loss. Before 1995, trade between Canada and Mexico was subject to tariffs. In 1995, Mexico joined NAFTA and all Canadian and Mexican tariffs have gradually been removed.
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Assuming that South Korea is the only importer of Canadian beef, explain how South Korea's ban on beef imports affected beef producers and consumers in Canada.
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