Question

A large market for a U.S. shrimp exporter imposed a tariff on imported shrimp from the United States. Which of the following should the exporter do?

Answer 1

An anti-dumping import quota of 30 generally benefits consumers in the Land of Submarines but injures consumers in the exporting country. A quota of 70 further injures consumers in both countries.

Step-by-step explanation:

When the Land of Submarines imposes an anti-dumping import quota of 30, it will generally benefit consumers in the Land of Submarines and injure consumers in the exporting country. This is because the quota restricts the availability of imported goods, leading to higher prices and reduced consumer choice. However, producers in the Land of Submarines may benefit as they face less competition from foreign producers.

If the Land of Submarines imposes an import quota of 70, it will likely further injure consumers in both countries. The higher quota will lead to even more restricted choice and higher prices for consumers. Producers in the Land of Submarines may still benefit from reduced competition, but the overall impact is negative for consumers.