So, General Motors says: ''That's OK. We'll sell you that car for $20,000 and then, to make up the difference, we'll charge Americans $40,000 for the same car.''
What would happen is that no Canadian car industry would develop; General Motors would control the car market in Canada and Americans would get to pay for their car and the profit margin that GM lost when they sold cars to Canadians. Not a few Americans would be screaming from the top of buildings over unfair business practices & quite a few Americans woudld be sneaking off to Canada to buy their new cars. Then General Motors would start whining to the government to outlaw Americans from importing cars from Canada. And the American consumer gets shafted on prices and both Americans & the rest of car-purchasing world has less selection because the development of competing product has been squelched by artifically manipulating prices.
However, quite a few Americans would take the position that this is an OK deal because General Motors builds really fine cars & we ought not monkey around w/ a business model that produces such fine automobiles.