Question

American car dealers are still not completely back on their feet from a recent economic downturn. In order to help American car companies like Ford and GM gain more sales, Senator Joseph Ellis has proposed that all automobiles imported from Japan and Germany should pay an extra $2,000 per vehicle to enter the United States. (This would not affect cars from foreign car companies like Toyota and BMW that are built in factories in the United States, only those cars that are actually transported from overseas into the United States.Type of trade barrier: _________________________The trade barrier meant to protect _________________________.Argument for why you would or would not recommend this proposal:_________

Answer 1

The answer is Tariffs.

Step-by-step explanation:

To put it simply, tariffs are taxes put upon imported goods from foreign countries.

However, imported means actual and physical goods that are physically transported from one country to another.

These tariffs are imposed to protect the local industries/goods and services. Tariffs increase the price of imported goods which are usually cheaper than the locally produced goods, thus increasing the demand for the local goods.

I would recommend this as certain financially stronger foreign corporations do various illegal and unethical practices such as Dumping (selling below the production cost) which can be harmful for the local industries in the long term.

Moreover, a nation should focus more on developing entrepreneur capacities within their own countries rather than majorly relying on imported goods.

In addition, local small and medium businesses contribute to the employment more. Making it much important to protect the local industries.