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Basic Question 15 of 17
Assume the United States government is considering imposing a trade barrier on the importation of foreign-made cars to protect the American automobile industry and its workers from foreign competition. Suppose the government is considering imposing either a tariff or a quota on foreign cars. If it is going to do one or the other, which would be most beneficial from the government's standpoint? Why?
User Contributed Comments 1
| User | Comment |
|---|---|
| khalifa92 | the space between the deadweight loss will be in favor for the importer country in case of quota |
I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz
Learning Outcome Statements
compare types of trade restrictions, such as tariffs, quotas, and export subsidies, and their economic implications
CFA® 2024 Level I Curriculum, Volume 1, Module 6.