In 2002, the U.S. steel industry lobbied the U.S. government to impose a tax on the importation of foreignproduced steel to make the foreign steel more expensive. The barrier to international trade in this scenario is a(n) _____.

Question

In 2002, the U.S. steel industry lobbied the U.S. government to impose a tax on the importation of foreign­produced steel to make the foreign steel more expensive. The barrier to international trade in this scenario is a(n) _____.

Quizplus · Accepted Answer

The U.S. government imposing a tax on the importation of foreign-produced steel to make it more expensive is a clear indication of a tariff being levied. An embargo completely prohibits trade with a specific country, a sponge tax is not a term used in international trade, and a quota limits the quantity of imports allowed.