President Bill Clinton attempted to protect American firms from foreign competition by placing a government tax on Japanese automobiles imported to the United States.President Clinton's goal was to raise the price on Japanese imports,thereby encouraging American consumers to purchase American-made automobiles.The tax the president threatened to impose is an example of a __________.

Question

Quizplus · Accepted Answer

The tax imposed by President Clinton on Japanese automobiles imported to the United States is an example of a tariff, which is a tax on imports. A boycott is a voluntary refusal to buy goods or services, a quota is a limit on the amount of goods that can be imported, a sanction is a penalty imposed on a country, and a subsidy is financial assistance given by the government. None of these definitions apply to the situation described in the question.

President Bill Clinton Attempted to Protect American Firms from Foreign