A Situation in Which When One Country Raises Its Tariff

question 155

Multiple Choice

A situation in which when one country raises its tariff, other countries retaliate with increases of their own, which trigger yet further increases of tariffs from the first country, is termed

• A) escalation of tariffs by stages.
• B) a trade war.
• C) countervailing duties.
• D) Smoot-Hawley war.

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Definitions:

Report

A written or spoken account of something that has been observed, heard, done, or investigated.

Form 1120

The U.S. Corporate Income Tax Return, a form used by corporations to report their income, gains, losses, deductions, and credits to the IRS.

C Corporations

A type of business entity that is taxed separately from its owners, providing limited liability to its shareholders.

Tax Returns

Formal documents filed with tax authorities that report income, expenses, and other pertinent tax information.