Solved

Situation 32-1 in the Early 1980s, the U

Question 95

Multiple Choice

Situation 32-1 In the early 1980s, the U.S. automobile industry managed to influence the government to negotiate a voluntary export restraint agreement with Japan that was in effect from 1981 until 1985. The predictable result was an average increase in the price of Japanese cars by about $1,000 and of U.S. cars by about $370. Also, as a result of the import quotas, 26,000 new jobs were "created" in the U.S. automobile industry.
Refer to Situation 32-1. Which of the following arguments is least likely to have been used by the U.S. auto industry to argue for import quotas?


A) If the quantity of low-priced import cars is not restricted, foreigners will overtake the U.S. car market.
B) A healthy auto industry is vital to our national security.
C) If import quotas are in place, our profits will increase by about $300 per vehicle.
D) Japan is protecting its market, and so should we; all we want is a level playing field.

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