Under trade agreements signed with other countries,the United States is allowed to impose tariffs on imports if foreign firms are selling products in the United States at 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 saved some jobs in the U.S. wire hanger industry, but it increased costs and possibly cost jobs in the U.S. dry cleaning industry. This is because the increased cost of imported wire hangers would lead to higher prices for U.S. dry cleaners who rely on cheap imported hangers. Additionally, with decreased imports of Chinese wire hangers, U.S. consumers would have fewer options and may pay higher prices for hangers overall.

Under Trade Agreements Signed with Other Countries,the United States Is