Question: You work for a global marketing consulting firm.

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You work for a global marketing consulting firm. Concerned about the United States’ negative balance of trade, a trade deficit, you are being asked to assist several clients in their lobbying efforts to increase United States’ exports to other countries and decrease imports. Knowing that imposing or removing tariffs and/or quotas can affect the balance of trade, you decide to focus on these protectionism strategies. What would you do in the following cases?

The United States wants to limit imports of European shoes by increasing the price of those shoes in the States. You advise your clients to ask the U.S. to

Remove tariff

Impose Tariff

Remove quote

Impose Quota

U.S. beer manufacturers want to increase exports of beer to Canada by lowering beer prices of U.S. beer in Canada. For this to happen, you advise your clients to ask the U.S. to approach Canada about:

Remove tariff

Impose Tariff

Remove quote

Impose Quota

The United States wants to gain a larger share of the Japanese rice market by lowering U.S. rice prices in Japan. For this to happen, you advise your clients to ask the U.S. to approach Japan about:

Remove tariff

Impose Tariff

Remove quote

Impose Quota

The United States wants to protect its domestic sugar producers by limiting the supply of foreign sugar; therefore, you advice your clients that they should suggest to the United States to:

Remove tariff

Impose Tariff

Remove quote

Impose Quota

If the United States wanted to increase the supply of U.S. corn, cotton and wheat in China, you would advise your clients to ask the U.S. to approach China about:

Remove tariff

Impose Tariff

Remove quote

Impose Quota

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