Countervailing Duties Are a Method of Trade Restriction Designed to Offset

question 107

Multiple Choice

Countervailing duties are a method of trade restriction designed to offset

• A)foreign tariffs.
• B)dumping.
• C)quotas.
• D)a trading partner's countervailing duties.
• E)subsidies by foreign governments to their exporting firms.

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Definitions:

Selling Price

The amount of money for which a product or service is sold to a customer.

Cost

The amount of money required to purchase something or the expenditure incurred on the production of a good or service.

New Balance

The amount remaining in an account after all debits and credits have been accounted for during a specified period.

Mark-up

An increase in the original price of items meant to compensate for overhead expenditures and ensure profit.