Question

Due to the dramatic effects the coronavirus crisis has had on their countries' economies, Norway and Saudi Arabia make a trade. In the agreement, Norway will limit the amount of salmon fish that it exports to the United States to 5,000 tons per year and Saudi Arabia will lower the price of the oil that it is selling to Norway by 25%. This is an example of:

B. A tariff
C. A joint tariff action
D. A sanction
E. VER
F. A quota

Answer 1

The trade agreement is an example of a quota, which is a limit set on the amount of a product that can be imported.

Step-by-step explanation:

The trade agreement between Norway and Saudi Arabia, where Norway will limit its salmon fish exports to the United States to 5,000 tons per year, and Saudi Arabia will reduce the price of the oil it is selling to Norway by 25%, is an example of a quota. A quota is a trade restriction that sets a maximum quantity allowed for imports. This measure has been taken in response to the dramatic economic impacts caused by the coronavirus crisis, which has significantly affected the economies of many countries.