Asked by Morgan Hooper on May 18, 2024
Verified
If the U.S.imposed a quota on motorcycle imports from Japan it would lead to a _____ quantity imported,and a _______ quantity produced in the U.S.
A) lower;higher
B) higher;lower
C) lower;lower
D) higher;higher
Quota
A government-imposed trade restriction that limits the number or monetary value of goods that can be imported or exported during a specified period.
Motorcycle Imports
Refers to the bringing in of motorcycles from foreign countries into a domestic market usually subject to tariffs, quotas, and regulations.
Quantity Imported
This refers to the total amount of goods brought into a country from abroad for commercial purposes.
- Determine and describe the consequences of tariffs, quotas, and diverse trade barriers on international trading activities.
- Assess the strategic justifications for implementing trade protectionism and the consequences on local industries.
Verified Answer
CA
Cinthya ArenasMay 24, 2024
Final Answer :
A
Explanation :
Imposing a quota on motorcycle imports from Japan would limit the quantity imported, resulting in a lower quantity imported. Additionally, it would create a higher demand for motorcycles produced in the U.S., leading to a higher quantity produced domestically.
Learning Objectives
- Determine and describe the consequences of tariffs, quotas, and diverse trade barriers on international trading activities.
- Assess the strategic justifications for implementing trade protectionism and the consequences on local industries.