Question

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 __________.

a. boycott

b. quota

c. tariff

d. sanction

e. subsidy

Answer 1

C. A tariff

Tariffs are taxes imposed on imported foreign goods and are designed to encourage people to buy domestic products

Answer 2

Answer:c. tariff

Explanation: What is a Tariff?

A tariff is a tax which is imposed by one state on all the goods and services that get imported into their state from another state.

How a Tariff Works

Tariffs are crucial and are used to put restrictions on imported goods and services, these high prices makes business less interested in buying from other states.

There are two types of tariffs: A specific tariff which is based on paying a fixed fee on the imported product.

An ad-valorem tariff which is dependent on the value of that item.

Governments usually imposes tariffs in order to makes sure that domestic industries are protected from foreign competition