Asked by
Saarugen Linges
on Oct 25, 2024
Verified
As noted in the text, the major Japanese auto manufacturers agreed to "voluntary" import restrictions that reduced the number of cars they could ship to the U.S. market in the 1980s. One of the key outcomes from this policy is that the Japanese manufacturers were able to:
A) focus on more profitable auto markets in other countries.
B) raise their prices of autos in the U.S. market and capture higher profit margins on the imported cars.
C) cut their costs by more than the import tariff, so profit per auto increased.
D) all of the above
Import Restrictions
Measures by governments to control the quantity or quality of goods and services coming into a country to protect domestic industries from foreign competition.
Japanese Manufacturers
Refers to companies based in Japan that are involved in the production of goods across various industries, known for innovation and quality.
Profit Margins
The percentage of revenue that remains as profit after all costs and expenses are subtracted from total sales.
- Acquire knowledge about how taxes and tariffs influence the economic conditions of domestic and international marketplaces.
Verified Answer
DB
Learning Objectives
- Acquire knowledge about how taxes and tariffs influence the economic conditions of domestic and international marketplaces.