Asked by Sherelle Robinson on Jul 16, 2024
Verified
Suppose the United States eliminates high tariffs on German bicycles. As a result, we would expect
A) the price of German bicycles to increase in the United States.
B) employment to decrease in the German bicycle industry.
C) employment to decrease in the U.S. bicycle industry.
D) profits to rise in the U.S. bicycle industry.
High Tariffs
Elevated taxes imposed on imported goods, typically used to protect domestic industries from foreign competition.
German Bicycles
Bicycles manufactured in Germany, known for their quality, engineering, and design.
United States
A country in North America, known for its significant economic, political, and cultural influence globally.
- Evaluate the economic implications of trade policies on domestic industries and employment.
Verified Answer
SS
Serene SalemJul 18, 2024
Final Answer :
C
Explanation :
Eliminating high tariffs on German bicycles would make these bicycles cheaper in the U.S. market, increasing their competitiveness against U.S.-made bicycles. This could lead to decreased demand for domestically produced bicycles, potentially resulting in lower employment in the U.S. bicycle industry as companies adjust to the increased competition.
Learning Objectives
- Evaluate the economic implications of trade policies on domestic industries and employment.