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.
Which of the following is likely true?
A) Nike, which is headquartered in Oregon and produces shoes in Indonesia, China and Vietnam, likely supports the Smoot-Hawley Act.
B) New Balance shoes, which is based in Boston and produces all of their shoes in the United States, likely supports the Smoot-Hawley Act.
C) Consumers in the United States who wish to purchase foreign-made sneakers will pay a lower price due to the Smoot-Hawley Act.
D) The Smoot-Hawley Act limits the number of shoes that Nike can sell in the United States.
E) Consumers in the United States are unable to purchase foreign-made sneakers due to the Smoot-Hawley Act.
Question 2 - The US Department of Commerce likely raised tariffs on Chinese solar-product manufacturers in an effort to:
A) put a limit on the number of Chinese solar products imported by US consumers.
B) make it cheaper for US consumers to buy solar products from China.
C) give US solar-product manufacturers an opportunity to gain market share.
D) completely halt the import of Chinese solar-products into the United States.
E) help US consumers of solar products.
Question 3 - Suppose Russia would like to increase the amount of luxury goods brought into their country from other countries. What trade policy should they enact to accomplish this goal?
A) Increase tariffs on luxury good imports.
B) Enact embargo on luxury good imports.
C) Lower quota on luxury good imports.
D) Decrease tariffs on luxury good imports.
E) Devalue their currency.
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