Suppose France Increased the Tariff on Wine Imported from Spain

question 73

Multiple Choice

Suppose France increased the tariff on wine imported from Spain, and in retaliation Spain decreased the quota on perfumes France can export to Spain. What might one expect to be the result?

• A) the amount of Spanish wine France imports to decrease and the number of French perfumes Spain imports to decrease
• B) French consumers to pay higher prices for Spanish wine and the number of French perfumes Spain imports to decrease
• C) French consumers to pay lower prices for Spanish wine and Spanish consumers to pay lower prices for French perfumes
• D) the amount of Spanish wine France imports to decrease and the number of French perfumes Spain imports to increase

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Definitions:

External Funding Requirement

The need for additional capital from outside sources to finance a company’s operations or growth.

Growth In Assets

An increase in the value or quantity of the assets owned by a company or individual, which can contribute to increased wealth or investment capacity.

Current Liabilities

Short-term financial obligations that are due within one year or within a normal operating cycle.

Top-Down Plan

An approach to business strategy and project planning where decisions are made at the highest level and communicated down the organizational hierarchy.