Of the Following, Who Gains Because of Tariffs and Why

question 22

Multiple Choice

Of the following, who gains because of tariffs and why?

• A) Foreign producers because they earn more total revenue.
• B) Domestic buyers because they pay a lower price.
• C) Domestic buyers because they can be sure of buying high-quality products.
• D) Domestic producers of protected goods because they can sell at a higher price.
• E) Foreign governments because they gain more revenue.

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Definitions:

North American Market

Refers to the economic and consumer markets in North America, typically encompassing the United States, Canada, and Mexico.

China

A country in East Asia, the world's most populous nation, with a rich history, diverse cultures, and a rapidly growing economy.

Culture

The shared values, norms, behaviors, and artifacts of a group of people, transmitted from one generation to another.

Power Distance

A measure of the extent to which less powerful members of organizations and institutions accept and expect that power is distributed unequally.