If the United States government imposes a "countervailing duty," this duty is being imposed to offset
A) a foreign subsidy to a good exported to the United States.
B) a foreign tariff on U.S. exports of a good.
C) a foreign "voluntary" export restraint (VER) on a good exported to the United States.
D) a foreign import quota on U.S. exports of a good.

Question

Quizplus · Accepted Answer

A countervailing duty is a tariff that the government of a country imposes on goods imported from foreign countries that have already had subsidies given to their goods. The revenue from a countervailing duty is usually used to offset the subsidies given to the foreign producers.

If the United States Government Imposes a "Countervailing Duty," This