Country X imposes a low tariff rate for the first 5,000 pounds of rice it imports from Japan and a high tariff rate on all imported rice above this threshold. Country X most likely uses a ________.

Question

Quizplus · Accepted Answer

A tariff rate quota is a trade policy tool that allows a certain quantity of goods to be imported at a lower tariff rate, with higher tariffs applied to quantities exceeding this limit. In this scenario, the first 5,000 pounds of rice imported from Japan are subject to a low tariff, while any amount above this threshold faces a higher tariff, fitting the description of a tariff rate quota.

Country X Imposes a Low Tariff Rate for the First