12) Tariffs and import quotas are the backbone of our international economic pol
ID: 1121898 • Letter: 1
Question
12) Tariffs and import quotas
are the backbone of our international economic policies and are designed to help developing countries grow faster.
lead to large-scale lobbying efforts by the companies and industries affected.
have had little effect on the automobile industry, for example.
lead to a better allocation of resources in the United States since these policies protect our smaller and more vulnerable companies and industries.
A)are the backbone of our international economic policies and are designed to help developing countries grow faster.
B)lead to large-scale lobbying efforts by the companies and industries affected.
C)have had little effect on the automobile industry, for example.
D)lead to a better allocation of resources in the United States since these policies protect our smaller and more vulnerable companies and industries.
Explanation / Answer
(12)
Tariff is a tax on the importer and exporter for restricting trade in the country, It is imposed for the benefit of the domestic producer and consumers.
The import quota is the maximum amount of goods and services which can be imported into the country. This is imposed for protecting the infant industry of the country.
Therefore import quota and tariff help to the domestic producer because, with the quota and tariff, the price of the goods and services increases in the economy. It helps the domestic producers.
Therefore it can be said that the Tariffs and import quotas are the backbone of our international economic policies and are designed to help developing countries grow faster.
Hence option A is the correct answer.
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