Asked by Kimberly Valencia-Franco on Apr 29, 2024
Verified
Country A limits other nation's exports to Country A to 1,000 tons of coal annually. This is an example of a(n)
A) protective tariff.
B) export subsidy.
C) import quota.
D) voluntary export restriction.
Import Quota
A government-imposed limit on the quantity of a specific type of good that can be imported into a country over a set period of time.
Protective Tariff
A tariff imposed by a country on imported goods to protect domestic industries from foreign competition by making imported goods more expensive.
Export Subsidy
A government policy to encourage export of goods and discourage sale within the domestic market through direct payments, tax relief for exporters, or subsidizing part of the cost.
- Familiarize oneself with the goals and effects of excise taxes, protective tariffs, revenue tariffs, import quotas, and voluntary export restrictions.
Verified Answer
CM
Claire ManciniMay 06, 2024
Final Answer :
C
Explanation :
An import quota is a restriction on the quantity of a good that can be imported into a country. In this scenario, Country A has imposed a limit on the amount of coal that can be imported from other nations, which is an import quota. It is not a protective tariff, which is a tax on imported goods, an export subsidy, which is a payment to producers of exported goods, or a voluntary export restriction, which is a voluntary agreement by a exporting nation to limit its exports to a particular country.
Learning Objectives
- Familiarize oneself with the goals and effects of excise taxes, protective tariffs, revenue tariffs, import quotas, and voluntary export restrictions.