Assume that a country imposes a tariff in order to gain a price advantage on an item.What is the typical response from the exporting country?
A)It accepts the situation and does nothing about it.
B)It seeks greater efficiency in order to offset the tariff.
C)It refuses to sell to the country that imposes the tariff.
D)It retaliates by imposing tariffs or quotas on items from the other country.

Question

Quizplus · Accepted Answer

The typical response from an exporting country to a tariff imposed by another country is to retaliate by imposing tariffs or quotas on items from the other country. This is done in order to balance trade between the two countries and to maintain competitive pricing.

Assume That a Country Imposes a Tariff in Order to Gain