Question

Huong has been saving money for two years in order to make a down payment on her first new car. She has looked at several different makes and models of both foreign and domestic cars. She finally located the "car of her dreams." Unfortunately her "dream car" is a foreign-made car and will cost her substantially more than a domestic-made car because the car is imported into the United States. In order to control the flow of products imported into the country, what does the US government and other governments impose on some imports?

Answer 1

The U.S. and other governments control imports by imposing tariffs, quotas, and sometimes outright bans. Tariffs increase the cost of imports to protect domestic industries, while quotas limit the quantity of imports. These measures can protect jobs but may also limit consumer choices and competition.

Step-by-step explanation:

The United States government, as well as other governments around the world, impose a variety of measures to control the flow of products imported into their countries. One such measure is the imposition of tariffs, which are taxes added on imported goods. These tariffs increase the cost of imports, making them more expensive than domestic products and thus protecting local industries. For example, in 2009, President Obama and Congress enacted a tariff on tires imported from China, which increased their price significantly over a three-year period. This decision was influenced by political interest groups like the United Steelworkers union, which saw jobs in the tire industry affected by imports.

Another measure that can be used is quotas, which are limitations on the quantity of goods that can be imported. Governments may also opt to ban the importation of certain goods entirely. Additionally, international trade allows for competition and variety, which leads to innovation and improved products, as in the case of the U.S. automobile industry facing competition from foreign carmakers.

It's important to understand the impact of international trade on local economies and how measures like tariffs and quotas can protect domestic industries while potentially limiting consumer choices and affecting prices.

Answer 2

Answer: Import restrictions

Explanation: Import restrictions are methods used to control the types, quantity and value of goods being imported into a country from other countries.

There are various types of import restrictions and they are:

1. Import duties: import duties are tariffs or taxes imposed on imported goods to make them more expensive thereby discouraging the purchase and use of imported goods.

2. Import quota: this is a restriction on the volume of imported goods that would be allowed into the country at a particular period of time or from a particular country.

3. Currency restrictions: this is used to restrict the amount of foreign currency used in the settlement of imported goods.

4. Prevention of the entry of illegal or harmful items into the country.