Germany wants to retaliate against India for trade restrictions that limited the number of German cars that could be brought into India. Which of the following policy decisions would Germany utilize to accomplish this goal?
A) Increasing import quota on cars from India
B) Enacting export embargo on cars to India
C) Adjusting import tariffs on cars from India from 20 to 5
D) Eliminating the import tariff on cars from India
E) Adjusting import tariffs on cars from India from 5 to 20
Question 2 - During a stormy meeting of wearable technology firms, several company presidents said that without tariff cushions, many of them would go broke. They represent a new industry that needs protection until their firms grow to a size that will allow them to be competitive. As a result, they would like to see:
A) increased import quotas.
B) increased import tariffs.
C) Congress enact an export embargo.
D) an increase in the value of the US dollar.
E) increased taxes on domestic technology firms.
Question 3 - The Smoot-Hawley Tariff Act of 1930 set high tariffs on hundreds of products. Today, many of the tariffs from this act have been reduced or even eliminated. One exception is the tariff rate of 48 on sneakers imported into the United States.
If the Smoot-Hawley tariff on imported sneakers was repealed, you would expect:
A) consumers in the United States purchase fewer foreign-made sneakers.
B) a company like New Balance, which produces all of its shoes in the United States, to see an increase in sneaker sales.
C) prices on foreign-made sneakers to increase.
D) imports of foreign-made sneakers to increase.
E) exports of domestically made sneakers to increase.
Question 4 - American automakers are concerned about the availability of so many foreign cars to US consumers, which they fear could cause loss of jobs in the American auto industry. To address the situation, they encourage Congress to:
A) increase export quota.
B) enact export embargo.
C) decrease import tariffs.
D) increase import tariffs.
E) increase import quota.
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