Scenario: Konesia Joins the World
Konesia, a former totalitarian economy and pariah state, is taking steps toward a free market economy. The government wants to encourage trade but also wants to find a balance so that local businesses and industries are not harmed.
-Which of the following is the most likely reason for Konesia's government to impose an import quota?

Question

Quizplus · Accepted Answer

Imposing an import quota can help maintain market shares and prices of domestic producers, which would align with Konesia's goal of protecting local businesses and industries while still encouraging trade. Option A does not require an import quota, as adequate supplies can be maintained through other means such as domestic production or imports from other countries that are not subject to the quota. Option C is unlikely, as Konesia is trying to increase its presence in world markets. Option D is also unlikely, as Konesia is just starting to develop its export capabilities and would not yet have established target levels.