Scenario 32-3 ​

question 22

Essay

Scenario 32-3
​
Concerns raised about the declining U.S. shoe industry and unfair labor practices in foreign shoe factories lead the Congress and President to impose a quota on shoe imports.
-Refer to Scenario 32-3. Overall as a result of this change in policy, what happens to exports, imports, and net exports?

---

Definitions:

Market Price

The current price at which an asset or service can be bought or sold in the marketplace, determined by the forces of supply and demand.

Marginal Cost

The financial implication of producing an extra unit of a product or service.

Downstream Division

A segment of a business operation that focuses on the processing, marketing, and selling of finished products to consumers as opposed to raw material processing.

Profit Centers

Segments or divisions within an organization that are directly responsible for generating profit through their operations and decision-making.