Yokahama Sports Equipment Ltd. is a successful manufacturer and distributor of sports equipment in the Far East, Australia, and Europe. Top management sees attractive opportunities in the U.S. market because of the stable economy and government. In addition, of course, Americans have disposable income to spend and are willing to buy imported goods. Yokahama executives realize, however, that entering the U.S. market can be difficult and that they’ll need a well-planned strategy.
-The U.S.government may try to keep Yokahama's prices more competitive with those of American?
made goods by placing a tax,called an embargo,on Yokahama imports.

Question

Quizplus · Accepted Answer

An embargo is a government order that restricts commerce or exchange with a specified country or the exchange of specific goods. A tariff is the correct term for a tax placed on imported goods to make them more expensive and competitive with domestic products.