Multiple Choice
SCENARIO: FINNISH STEEL
Suppose that the freetrade price of a ton of steel is €500.(Note: € is the
Symbol for the euro, a common currency used in 16 European countries,
Including Finland.) Finland, a small country, imposes a €60 perton
Specific tariff on imported steel.With the tariff, Finland produces 300,000
Tons of steel and consumes 600,000 tons of steel.
Reference: Ref 85
(Scenario: Finnish Steel) What is the purpose of this €60perton tariff?
A) Its purpose is to protect Finnish steel consumers from foreign competition.
B) Its purpose is to protect Finnish steel producers and consumers from the World Trade Organization.
C) Its purpose is to protect Finnish steel producers from foreign competition.
D) Its purpose is to cause Finland to comply with provisions of the General Agreement on Tariffs and Trade.
Correct Answer:
Verified
Correct Answer:
Verified
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