The Main Difference Between a Tariff and an Import Quota

question 213

Multiple Choice

The main difference between a tariff and an import quota is that:

• A)an import quota reduces imports more sharply than a tariff.
• B)a tariff will cause higher prices than an import quota.
• C)a tariff generates tax revenue,while an import quota generates rents to the license holders.
• D)a tariff will cause lower prices than an import quota.

Understand the impact of global consumer behavior on marketing strategies.

Identify factors that differentiate international firms from multinational and transnational firms.

Recognize the importance of cross-cultural analysis in international marketing.

Understand the concept of global consumers and their characteristics.

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Definitions:

Manufacturing Overhead

All the indirect costs associated with the production process, excluding direct materials and direct labor.

Product Costs

Costs that are directly associated with the production of goods or services, including materials, labor, and overhead expenses.

Downstream Cost

Expenses incurred after the production phase, such as distribution and marketing costs.

Quality Check

The process of inspecting products or services to ensure they meet the required quality standards before being delivered to customers.