Asked by Deanne Pawhay on May 12, 2024
Verified
Tariffs and quotas do not have an affect on pricing strategies because these are government-instituted policies.
Tariffs
Taxes imposed on imported goods, often used by governments to control trade flows, protect domestic industries, or generate revenue.
Quotas
Fixed limits or targets, often in a business or policy context, dictating the amount of goods or activities allowed.
- Assess the repercussions of tariffs, quotas, and trade balances on cross-border trade and the determination of production locales.
Verified Answer
NK
Nadiah KamalMay 14, 2024
Final Answer :
False
Explanation :
Tariffs and quotas can have a significant impact on pricing strategies as they affect the cost of goods and services. Tariffs increase the cost of imported goods, which can lead to higher prices for consumers. Quotas limit the amount of imports, which can lead to increased demand for domestic goods and potentially higher prices. Companies may adjust their pricing strategies in response to these policies to remain competitive.
Learning Objectives
- Assess the repercussions of tariffs, quotas, and trade balances on cross-border trade and the determination of production locales.