Question

The United States limits the amount of cheese purchased from other countries; this policy is a type of ____.

1) import quota
2) import tariff
3) import dumping
4) export quota
5) trade embargo

Answer 1

The United States policy limiting cheese imports is an example of an import quota, a trade control measure to protect domestic industries.

Step-by-step explanation:

The policy of the United States limiting the amount of cheese purchased from other countries is an example of an import quota. Import quotas are numerical limitations on the quantity of products that can be imported into a country. The use of import quotas, like in the case of the Reagan Administration imposing a quota on the import of Japanese automobiles in the 1980s, is a way to control trade and protect domestic industries. In America, import quotas have been utilized for various products, such as sugar, to prevent the decline in prices that could harm domestic producers. The United States Department of Commerce and the United States International Trade Commission are key players in determining if import dumping has occurred and if protective tariffs are necessary.