If the United States Threatens to Impose a Tariff on Colombian

question 80

Multiple Choice

If the United States threatens to impose a tariff on Colombian coffee if Colombia does not remove agricultural subsidies, the United States will be

• A)better off regardless of how Colombia responds.
• B)better off if Colombia removes the subsidies, and will be no worse off if it doesn't.
• C)worse off if Colombia doesn't remove the subsidies in response to the threat.
• D)worse off regardless of how Colombia responds.

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Definitions:

Contracts Valid

Agreements between parties that meet all legal requirements to be enforceable.

Collateral Promise

An ancillary agreement to answer for the debt or obligation of another person if that person fails to meet their obligation.

Principal Debtor's Debt

The main amount of money that a debtor is obligated to pay back, excluding interest or additional fees.

Oral

Relating to the spoken word or communication by mouth, as opposed to written or non-verbal means.