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Author Question: Explain the effects of the tariff rate quota on the sugar industry in the United States. What ... (Read 23 times)

WWatsford

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on: Jul 7, 2018
Explain the effects of the tariff rate quota on the sugar industry in the United States.
 
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Question 2

Why does the international monetary system exist?
 
  A) because most countries have their own currencies
  B) to control interest rates on international business loans
  C) to avoid monetary crises from becoming global
  D) because it sets the price of a given currency
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Perkypinki

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Reply #1 on: Jul 7, 2018
Answer to Question 1

The U.S. government uses a tariff rate quota to restrict the amount of sugar imported by the United States. This policy benefits domestic sugar producers by creating more need for domestic production and higher prices. Producers of sugar substitutes also benefit as manufacturers of sweetened products use sugar substitutes in place of sugar. Among those who are worse off as a result of the policy are domestic candy manufacturers and soft drink makers who have to pay higher prices for sugar.

Answer to Question 2

A


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