American automakers are concerned about the availability of so many foreign cars to US consumers, which they fear could cause loss of jobs in the American auto industry. To address the situation, they encourage Congress to:
A) increase export quota.
B) enact export embargo.
C) decrease import tariffs.
D) increase import tariffs.
E) increase import quota.
Question 2
The Smoot-Hawley Tariff Act of 1930 set high tariffs on hundreds of products. Today, many of the tariffs from this act have been reduced or even eliminated. One exception is the tariff rate of 48 on sneakers imported into the United States.
Which of the following is likely true?
A) Nike, which is headquartered in Oregon and produces shoes in Indonesia, China and Vietnam, likely supports the Smoot-Hawley Act.
B) New Balance shoes, which is based in Boston and produces all of their shoes in the United States, likely supports the Smoot-Hawley Act.
C) Consumers in the United States who wish to purchase foreign-made sneakers will pay a lower price due to the Smoot-Hawley Act.
D) The Smoot-Hawley Act limits the number of shoes that Nike can sell in the United States.
E) Consumers in the United States are unable to purchase foreign-made sneakers due to the Smoot-Hawley Act.
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