The imposition of an import quota on steel by the U.S. government is likely to:

Question

Quizplus · Accepted Answer

The imposition of an import quota on steel by the U.S. government would limit the amount of foreign steel that can be imported into the country. This would lead to a decrease in the supply of steel, which would drive up its price. This, in turn, would increase the cost of production of steel-using American firms, as they would have to pay more for the steel they need. As a result, the firms may have to increase the price of their products or reduce their output, which would negatively impact their competitiveness.

The Imposition of an Import Quota on Steel by the U.S