Asked by
Allison Ramsey
on Oct 12, 2024
Verified
An essential difference in the impact of import quotas as opposed to tariffs is that
A) import quotas generate no revenue for the government,whereas tariffs do.
B) tariffs result in price increases for the foreign goods affected,whereas quotas do not.
C) import quotas result in lower sales of foreign goods,whereas tariffs do not.
D) tariffs are protectionist,whereas import quotas are oriented toward free trade.
E) tariffs result in greater profits than import quotas for the American industries protected.
Import Quotas
Limits set by a government on the amount or value of goods that can be imported into a country.
Tariffs
Taxes imposed by a government on imported goods or services to protect domestic industries or to generate revenue.
Revenue
The total amount of income generated by the sale of goods or services related to a company's primary operations.
- Evaluate the consequences of tariffs, quotas, and subsidies on worldwide trade and domestic markets.
- Comprehend the significance of governmental actions and policies in shaping global trade practices.
Verified Answer
IT
Learning Objectives
- Evaluate the consequences of tariffs, quotas, and subsidies on worldwide trade and domestic markets.
- Comprehend the significance of governmental actions and policies in shaping global trade practices.