Question

A US company makes furniture and uses large amounts of exotic woods. How will quotas on imported wood affect he price of the product and the

marketing plans?

Answer 1

Answer: See explanation

Step-by-step explanation:

A quota is simply referred to as a limited quantity of a product that can either be produced in a country or imported or exported under official controls. A quota is usually done to limit importation of goods and encourage local production.

Since the US company makes use of large amount of exotic goods which are usually imported, this will bring about a reduction in the supply of furniture as there'll be decrease in wood.

This will hence lead to an increase in price of the available furniture. This will certainly have a negative effect on the marketing plan of the company.