3. You are advising the Federal Minister of International Trade, Export Promotion, Small Business and Economic Development on the effects of Canada adopting a new trade policy. The Minister wants to promote agriculture by introducing a policy of subsidizing wheat exports. She claims that this policy will benefit Canadian farmers, and will help reduce food prices in importing countries where grain prices are currently high. In your briefing to the Minister, please outline the full set of welfare effects of such a policy. Make sure to identify where the costs and benefits will fall, including the effects on Canadian farmers, foreign consumers, and all others directly affected. Do you agree with the Minister's assessment?
