Under Trade Agreements Signed with Other Countries,the United States Is

question 65

Multiple Choice

Under trade agreements signed with other countries,the United States is allowed to impose tariffs on imports if foreign firms are selling products in the United States at below their production cost.This is exactly what occurred when the United States raised the tariff on wire hangers imported from China.This tariff

• A) increased wages in the Chinese wire hanger industry and increased imports of Chinese wire hangers to the United States.
• B) decreased imports of chinese wire hangers to the United States and increased exports of U.S. wire hangers to China.
• C) saved some jobs in the U.S. wire hanger industry, but increased costs and possibly cost jobs in the U.S. dry cleaning industry.
• D) increased costs in the Chinese wire hanger industry and decreased costs in the U.S. wire hanger industry.