Quotas and Tariffs Are Similar in That They Both

question 15

Multiple Choice

Quotas and tariffs are similar in that they both

• A) generate revenue for the government that imposes them.
• B) increase the prices of goods and services in the domestic market.
• C) increase the revenues of the firms importing the goods and services.
• D) harm domestic and foreign producers.
• E) harm domestic and foreign consumers.

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Definitions:

Adaptation

The process of adjusting to new conditions or environments.

Environment

External conditions and factors that influence and affect individuals, communities, or organizations.

Competitive Strategy

A long-term plan of action designed to give a company a competitive advantage over its rivals.

External Environment

All external forces that can affect an organization's performance, including economic, technological, socio-cultural, and political/legal factors.