Question

The US government wants to protect its domestic automobile industry from the growing Canadian automobile

industry. What action should US government take to address this issue and why?

By imposing a tariff on Canadian imports, the government can help lower the costs of production and increase profits for US

producers.

By imposing a tariff on Canadian imports, the government can improve the quality of US automobiles and decrease their cost

for consumers.

By imposing a quota on Canadian imports, the government can help lower prices for consumers and reduce demand for

Canadian automobiles.

By imposing a quota on Canadian imports, the government can help reduce competition domestically and increase demand

for US automobiles.

Answer 1

By imposing quota on Canadian imports, can reduce competition domestically and increase local demand.

Step-by-step explanation:

An import quota is a type of trade restriction that sets a physical limit on the quantity of a good that can be imported into a country in a given period of time. Quotas, like other trade restrictions, are typically used to benefit the producers of a good in that economy