Question

The world's largest manufacturer of peppermint candy canes was located in Albany, Georgia, until it could no longer afford to buy the sugar needed for its operation. It moved its manufacturing business to Mexico where there are no restrictions (like those that exist in the United States) on the amount of sugar that can be brought into the nation. The business moved to Mexico because of a(n)________ established by the U.S. government. a tariff a trade imbalance an excise tax a subsidy a quota

Answer 1

Answer:

The business moved to Mexico because of a quota established by the U.S.

Explanation:

Quotas are a set minimum or maximum amount of a product that can be imported or exported to a country, as a part of their economic policy. This restriction can be used to protect domestic industries from foreign competition or to keep a local industry from a shortage of certain products.

For this particular case, the restriction is an Import quota that limits the amount of sugar that can be brought into the United States. That is why the manufacturer decided to move operations to Mexico, where there is no such restriction.