Senator Smith Is Tired of All the Imports of Televisions

question 50

Multiple Choice

Senator Smith is tired of all the imports of televisions coming into this country.He proposes a bill by which all foreign-made televisions will be taxed an additional $100 before being allowed into the country.He receives a great deal of support for his bill,but one senator questions whether such an arrangement is illegal since it will discriminate against imported goods.Which of the following is correct?

• A) There is no problem with the additional tax because the U.S.is a sovereign nation.
• B) There is no problem with the tax so long as it can be shown that American jobs are being lost due to the number of televisions being imported.
• C) Under the principle of national treatment, the U.S., as a member of the World Trade Organization, may not discriminate against imported goods and may not apply the tax unless it is also applied equally to domestic products.
• D) The tax may not be imposed under the Uniform Trade Initiative.