The figure below shows the demand (D) and supply (S) curves of corn syrups.Figure 21.3

-After the U.S. government had approved the feeding of hormones to U.S. beef cattle, several western European nations restricted the import of beef from the U.S. Which of the following tools of commercial policy had been put to use in this situation?

Question

The figure below shows the demand (D) and supply (S) curves of corn syrups.Figure 21.3
 
-After the U.S. government had approved the feeding of hormones to U.S. beef cattle, several western European nations restricted the import of beef from the U.S. Which of the following tools of commercial policy had been put to use in this situation?

Quizplus · Accepted Answer

The restriction on the import of beef from the U.S. by several western European nations was due to health and safety concerns over the use of hormones in U.S. beef cattle. This is an example of health and safety standards being used as a tool of commercial policy. Tariffs would be a tax on imported goods, quotas would be a limit on the quantity of imports, subsidies involve government payments to domestic industries, and government procurement involves the government purchasing goods and services from domestic producers. None of these options are applicable in this situation.

The Figure Below Shows the Demand (D) and Supply (S)