U.S. citizens pay $5 billion more annually for shoes and Japanese citizens pay $6 billion more for rice than the actual cost of the products because
A) both countries have suffered major financial crises due to a severe trade imbalance.
B) both countries have imposed tariffs on imported goods to protect their domestic markets.
C) both countries have imposed limits on the quantity of these goods that can leave their respective domestic markets.
D) both products are considered essentials and as a result are more heavily taxed.
E) these products were purchased at a lower price from nations that currently are under governmental sanctions.

Question

Quizplus · Accepted Answer

Both countries have imposed tariffs on imported goods to protect their domestic markets, leading to higher prices for consumers.

US Citizens Pay $5 Billion More Annually for Shoes and Japanese