Activity 01
Simulation Game: Subsidy Trade Talks
Divide class into country teams; one team receives a subsidy card lowering costs. Teams negotiate export deals, tracking price changes and market shares on worksheets. Debrief on how subsidies shift competition.
Explain how non-tariff barriers can restrict international trade.
Facilitation TipIn the Subsidy Trade Talks simulation, give each group a fixed subsidy amount but vary their domestic production costs to show how support changes competitiveness.
What to look forPose the question: 'If Canada were to implement a voluntary export restraint on softwood lumber imports from the United States, what would be the likely effects on Canadian lumber producers, U.S. lumber producers, and Canadian consumers?' Facilitate a class discussion where students present arguments for each stakeholder group.