Under many trade agreements signed between countries, countries are allowed to impose tariffs on imports if foreign firms are selling products below their production cost.This is exactly what occurred when the United States raised the tariff on wire hangers imported from China.This tariff
A)increased wages in the Chinese wire hanger industry and increased imports of Chinese wire hangers to the United States.
B)decreased imports of chinese wire hangers to the United States and increased exports of U.S. wire hangers to China.
C)saved some jobs in the U.S. wire hanger industry, but increased costs and possibly cost jobs in the U.S. dry cleaning industry.
D)increased costs in the Chinese wire hanger industry and decreased costs in the U.S. wire hanger industry.

Question

Quizplus · Accepted Answer

The tariff on wire hangers imported from China decreased imports of Chinese wire hangers to the United States and may have resulted in increased exports of U.S. wire hangers to China. This could have saved some jobs in the U.S. wire hanger industry, but it may have increased costs and potentially cost jobs in the U.S. dry cleaning industry. Additionally, the tariff may have increased costs in the Chinese wire hanger industry but decreased costs in the U.S. wire hanger industry.

Under Many Trade Agreements Signed Between Countries, Countries Are Allowed