A Countervailing Duty Is a Tariff That Is Levied to Counteract

question 24

Multiple Choice

A countervailing duty is a tariff that is levied to counteract

• A) the dumping of goods in the domestic market by foreign firms.
• B) a sudden surge of imports which hurt a domestic industry.
• C) subsidies given to foreign firms by their own governments.
• D) low prices for imported goods that are made in countries with low wages.

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