Chapter 4 Flashcards
1
Q
If I run a country and I wanted to limit the amount of a certain good that’s being imported, what would I do? (Without just banning the product.) Why would I do this?
A
If I run a country and I wanted to limit the amount of a certain good that was being imported into the country, I would impose a tariff, not a quota. The reason why I would want to impose a tariff is because then the domestic company would receive the tariff money instead of the international firms receiving the quota money.
