The United States wishes to import no more than 100 million tons of sugar from India in any given year. The type of import restriction it should impose is a(n)
A) import duty.
B) foreign exchange control.
C) import quota.
D) embargo.
E) export duty.

Question

Quizplus · Accepted Answer

An import quota limits the quantity of a particular good that can be imported into a country, and this is the best choice for the United States to limit its sugar imports from India to 100 million tons. An import duty is a tax levied on imported goods, but it does not necessarily limit the quantity of imports. Foreign exchange controls and embargoes are more extreme measures that prohibit or severely restrict trade with a specific country. An export duty is a tax on goods as they leave a country, and it does not apply to imports.

The United States Wishes to Import No More Than 100