S.citizens pay $5 billion more annually for shoes and Japanese citizens pay $6 billion more for rice than the actual cost of the products because
A)both countries have suffered major financial crises due a severe trade imbalance.
B)both countries have imposed tariffs on imported goods to protect their domestic markets.
C)both countries have imposed limits on the quantity of these goods that can leave their respective domestic markets.
D)both products are considered essentials and as a result are more heavily taxed.
E)these products were purchased at a lower price from nations that currently are under governmental sanctions.

Question

Quizplus · Accepted Answer

The additional cost that U.S. citizens and Japanese citizens pay for shoes and rice, respectively, is due to the imposition of tariffs on imported goods by both countries to protect their domestic markets. This makes the imported products more expensive for consumers, thus increasing the revenue for domestic producers.

SCitizens Pay $5 Billion More Annually for Shoes and Japanese