What is an import quota? Explain how import quotas can be ...

[MGLQZ]

What is an import quota? Explain how import quotas can be misused.

Question 2

If 56 percent of the respondents agree with a statement, the z-value is 1.96, and the desired error is plus or minus 3.5 percent, the needed sample size is APPROXIMATELY:
 a. 770.
 b. 28.
 c. 393.
 d. none of these choices.

[mcarey591]

Answer to Question 1

An import quota is a restriction on the amount of a product that can be imported into a country. The purpose of a quota is to limit competition and protect domestic industries. However, instead of developing plans to become more competitive, the protected companies sometimes use quotas as an opportunity to raise prices to increase profits quickly. They are able to do this because they have less competition. This ultimately weakens the industry in the international marketplace.

Answer to Question 2

a