Question
The United States issued a 300% tariff on all Roquefort cheese imported into the United States from France. The tariff was imposed as a penalty
The United States issued a 300% tariff on all Roquefort cheese imported into the United States from France. The tariff was imposed as a penalty against France because it refused to import hormone-fed beef from the United States. Roquefort is considered the king of cheeses in France and this tariff is seen as a symbolic move.
a) Suppose a specialty cheese store in Washington imports USD$30,000 worth of Roquefort cheese. Calculate the tariff on the cheese.
b) Who wins and who loses with the tariff? Be specific.
c) What do you think of the tactics used by the United States?
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Statistics For Business And Economics
Authors: James T. McClave, P. George Benson, Terry Sincich
13th Edition
134506596, 978-0134506593
