Asked by Meagan Silver on Jun 14, 2024

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Quotas and tariffs discourage foreign governments from retaliating with quotas and tariffs of their own.

Quotas and Tariffs

Quotas and tariffs are trade policies where quotas limit the quantity of goods that can be imported, and tariffs are taxes imposed on imported goods to make them more expensive.

Foreign Governments

The governing bodies or authoritative administrations of countries other than one's own.

  • Understand the repercussions of trade restrictions like tariffs and quotas on global partnerships and local industries.
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AC
Aqila CamalyaJun 17, 2024
Final Answer :
False
Explanation :
Quotas and tariffs are forms of protectionism that restrict trade and can lead to trade wars between countries. When one country imposes quotas and/or tariffs on imports from another country, it is likely to provoke retaliation from the affected country. This retaliation may come in the form of similar restrictions on imports from the first country, or other forms of economic retaliation. Therefore, instead of discouraging foreign governments from retaliating, quotas and tariffs actually increase the likelihood of retaliation and trade disputes.