ECONOMICS
BARRIERS TO TRADE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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In 2011, the United States Department of Agriculture increased its annual sugar-import limit to 1.6 million tons for the year.
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Tariff
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Embargo
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Quota
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None of the above
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Explanation:
Detailed explanation-1: -These restrictions prevent lower-cost foreign sugar from putting downward pressure on U.S. prices. Sugar imports are currently restricted to about 15 percent of the U.S. market.
Detailed explanation-2: -Answer and Explanation: If the United States places an import quota on imported sugar, then consumers will seek substitutes for sugar and products that use sugar.
Detailed explanation-3: -Imports of sugar into the United States are governed by tariff-rate quotas (TRQs), which allow a certain quantity of sugar to enter the country under a low tariff. TRQs apply to imports of raw cane sugar, refined sugar, sugar syrups, specialty sugars and sugar-containing products.
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