You work for a global marketing consulting firm. Concerned about the United States' negative balance of trade, a trade deficit, you are being asked to assist several clients in their lobbying efforts to increase the United States' exports to other countries and decrease imports. Knowing that imposing or removing tariffs and/or quotas can affect the balance of trade, you decide to focus on these protectionism strategies. What would you do in the following cases?
1. The United States wants to limit imports of European shoes by increasing the price of those shoes in the States. You advise your clients to ask the United States to
a) remove a quota. b)impose a tariff. c)remove a tariff.d) impose a quota.
2. U.S. beer manufacturers want to increase exports of beer to Canada by lowering the price of U.S. beer in Canada. For this to happen, you advise your clients to ask the United States to approach Canada about
a) imposing a tariff.b) removing an export quota. c)removing a tariff.d) imposing an import quota.
3. The United States wants to gain a larger share of the Japanese rice market by lowering U.S. rice prices in Japan. For this to happen, you advise your clients to ask the United States to approach Japan about
a) imposing a quota. b)removing a tariff. c)imposing a tariff. d)removing a quota.
4. The United States wants to protect its domestic sugar producers by limiting the supply of foreign sugar. Therefore, you advise your clients that they should suggest to the United States to
a) remove a quota. b)impose a tariff.c) impose a quota. d)remove a tariff.
5. If the United States wanted to increase the supply of U.S. corn, cotton and wheat in China, you would advise your clients to ask the United States to approach China about
a) removing a tariff. b)imposing a tariff. c)removing a quota. d)imposing a quota.