Question

The countries of the European Union place a limit of 5,000, Japanese automobiles allowed to be imported into its member countries per month. What is a likely result of the action? A) The European Union will fail. B) The United States will settle the issue. C) Japan will increase trade with the European Union. D) Japan will place its own limits on trade with the European Union.

Answer 1

The answer that seems most appropriate would be D. Correct me if I am mistaken.

Answer 2

D) Japan will place its own limits on trade with the European union.

Step-by-step explanation:

The trade restrictions that set limit on the quantity of the good that can be imported into a country in a given period of time is called import quota. It benefits the producer of goods in that country and it affects the stiff competition offered by the foreign countries and protects the domestic industries. Tariffs are also used as a tool to protect domestic industries.

In this case since EU is imposing a limit on the import of Japanese automobiles, Japan would also place its limits on trade with European union as it will protect the domestically produced goods and also to manage the trade imbalance.