Question

U.S. sugar trade agreements have fallen through. What will the likely effect be?

a) Increase in domestic sugar production
b) Decrease in sugar prices
c) Surge in sugar imports
d) Boost in sugar exports

Answer 1

The likely effect of U.S. sugar trade agreements falling through is a decrease in sugar prices and a surge in sugar imports.

Step-by-step explanation:

The likely effect of U.S. sugar trade agreements falling through is a decrease in sugar prices and a surge in sugar imports. When trade agreements collapse, it becomes more difficult and costly for the United States to import sugar from other countries. As a result, the supply of sugar within the country decreases, leading to higher prices. To compensate for this, the domestic market may turn to importing more sugar from other countries.