Asked by BRANDI PRINCE on Jun 05, 2024
Verified
When shopping for a car you notice a significant price gap between domestic and imported cars, with the imported cars being much more expensive. This could be the result of
A) a tariff.
B) a boycott.
C) overseas consolidation.
D) globalization.
E) franchising.
Tariff
A tax levied on a good imported into a country; also called a duty.
Price Gap
The difference in price between comparable products or services, often impacting consumer choice and competitive positioning.
Imported Cars
Vehicles manufactured in one country and brought into another for sale, often subject to import taxes and regulations.
- Comprehend the implications of tariffs and trade agreements on international marketing.
Verified Answer
ZK
Zybrea KnightJun 06, 2024
Final Answer :
A
Explanation :
Tariffs are taxes placed on imported goods, making them more expensive for consumers to purchase. Therefore, a significant price gap between domestic and imported cars could be the result of tariffs placed on imported cars, which would increase the price for consumers.
Learning Objectives
- Comprehend the implications of tariffs and trade agreements on international marketing.