The Prohibitive Tariff Is a Tariff That

question 5

Multiple Choice

The prohibitive tariff is a tariff that

• A) is so high that it eliminates imports.
• B) is so high that it causes undue harm to trade-partner economies.
• C) is so high that it causes undue harm to import competing sectors.
• D) is so low that the government prohibits its use since it would lose an important revenue source.
• E) is so low that it causes domestic producers to leave the industry.

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Definitions:

Functional Strategy

A specific, detailed plan aimed at achieving objectives in a particular business area, supporting the overall business strategy.

Divisional Strategy

A strategic approach in which an organization is divided into semi-autonomous units, each focusing on a specific product line or market segment.

Corporate Strategy

The overall direction and scope of an organization over the long term, which achieves advantage in a changing environment through its configuration of resources.

Business Strategy

A plan of action designed to achieve a long-term or overall aim in the realm of commerce and management.