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Cotton Quota Cotton Growers in the Nation of Zanzi Export Nearly 700,000

Question 33

Multiple Choice

Cotton Quota
Cotton growers in the nation of Zanzi export nearly 700,000 bales of cotton every year. Zanzi is the home country for a fabric manufacturing facility that exports high-quality cotton fabric around the world. The government imposed a quota of 1 million bales of cotton that can be imported into Zanzi every year. The local fabric manufacturer is lobbying the government to remove the quota on cotton.
-Which of the following supports abolishing the cotton quota over maintaining it?


A) The cotton growers have a competitive edge over foreign cotton growers, and they are profitable.
B) The fabric manufacturer can save money by moving to a country that does not impose cotton quotas.
C) A competing fabric manufacturer is considering opening a production facility in Zanzi.
D) Global cotton prices have fallen in recent years and cotton fabric prices have increased.

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