Solved

Assume That Denmark,a Member of the European Union,is Contemplating the Enactment

Question 74

Multiple Choice

Assume that Denmark,a member of the European Union,is contemplating the enactment of a protective tariff for its fledgling CD industry due to domestic political and economic pressures.Assume further that the EU has a tariff that it has also enacted for all CD manufacturers within the EU that is considerably lower than the one that is being proposed in Denmark.The policy behind the lower EU tariff is to promote freer trade even at the risk of destroying some of the weaker manufacturers in that organization.In this situation:


A) Denmark could enact the higher tariff since EU members give up no authority to the organization in regulating trade and business practices.
B) Generally,when EU economic policies and rules conflict with the laws of member nations,EU law will prevail.Thus,Denmark's tariff may be illegal.
C) Denmark could petition the United Nations Council of Economic Policy and if it concurs with Denmark,the EU tariff policy would be overridden.
D) Assuming Denmark is a signatory to WTO,it could retain its higher tariff since the purpose of WTO is to protect domestic industries by promoting higher tariffs.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents