ECONOMICS
BARRIERS TO TRADE
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Tariff
|
|
|
Embargo
|
|
|
Quota
|
|
|
Standard
|
|
|
Subsidy
|
Detailed explanation-1: -The out-of-quota tariff is 33.87 cents per kilogram (15.36 cents per pound) for raw sugar, and 35.74 cents per kilogram (16.21 cents per pound) for refined sugar. In addition to the out-of-quota tariffs, there are safeguard duties based on the value or quantity of the imported sugar.
Detailed explanation-2: -Sugar policy is contained in legislation known as the Farm Bill, which comes up for reauthorization every five years. The bill authorizes the U.S. Department of Agriculture (USDA) to offer loans on sugar being stored for consumers by America’s sugar producers.
Detailed explanation-3: -The purpose of U.S. sugar policies is to keep domestic prices artificially high. In recent decades, U.S. sugar prices have been typically two or more times higher than prices on world markets.
Detailed explanation-4: -Import quotas control the amount or volume of various commodities that can be imported into the United States during a specified period of time. Quotas are established by legislation, Presidential Proclamations or Executive Orders.