A country that must inhibit imports should give preference to
A)quotas over tariffs because quotas are less likely to distort trade patterns between nations.
B)tariffs over quotas because, unlike quotas, tariffs offer no special benefits to inefficient exporters.
C)export subsidies over quotas or tariffs because export subsidies can protect a nation's domestic producers.
D)an embargo wherever possible because an embargo can serve as a political weapon in addition to being a "trade stopper."

Question

Quizplus · Accepted Answer

Tariffs are generally considered to be less trade-distorting than quotas because they do not limit the quantity of imports. Additionally, tariffs are applied uniformly to all imports, whereas quotas may result in certain countries or producers receiving preferential treatment. Tariffs also do not offer any special benefits to inefficient exporters, as they are required to pay the same tariff as their more efficient competitors. Therefore, a country that must inhibit imports should give preference to tariffs over quotas.

A Country That Must Inhibit Imports Should Give Preference to