During a stormy meeting of wearable technology firms, several company presidents said that without tariff cushions, many of them would go broke. They represent a new industry where companies need protection until they grow to a size that will allow them to be competitive. As a result, these companies would like to see which of the following?
A) increased import quotas
B) increased import tariffs
C) an increase in the value of the Canadian dollar
D) increased taxes on domestic technology firms

Question

Quizplus · Accepted Answer

The company presidents are asking for tariff cushions, which implies that they want protection from foreign competition. This can only be achieved through an increase in import tariffs. Therefore, the best choice is B.

During a Stormy Meeting of Wearable Technology Firms, Several Company