Question

Country A is a large producer of raw steel. Steel mills in Country A begin to close as more and more businesses import cheaper steel from Country B. To protect its steel industry, Country A can impose _____ on steel imports from Country B.

a) Quotas
b) Taxes
c) Embargoes
d) Regulations

Answer 1

Country A can impose quotas on steel imports from Country B to protect its steel industry.

Step-by-step explanation:

Country A can impose quotas on steel imports from Country B to protect its steel industry. Import quotas are numerical limitations on the quantity of products that a country can import. By imposing quotas, Country A can limit the amount of cheaper steel coming in from Country B, which will help protect its domestic steel mills. When a country like Country A finds its domestic industries threatened by cheaper imports, it might use one of these tools to protect its economy. For example, import quotas will limit the quantity of steel that can be imported from Country B, thereby supporting the domestic steel mills of Country A. Such measures will likely raise the price of the protected good in Country A, leading to higher costs for consumers but potentially preserving domestic jobs and the local steel industry.