Question

Huong has been saving money for two years in order to make a down payment on her first new car. She has looked at several different makes and models of both foreign and domestic cars. She finally located the "car of her dreams." Unfortunately her "dream car" is a foreign-made car and will cost her substantially more than a domestic-made car because the car is imported into the United States. In order to control the flow of products imported into the country, what does the US government and other governments impose on some imports?

Answer 1

Answer: Import restrictions

Explanation: Import restrictions are methods used to control the types, quantity and value of goods being imported into a country from other countries.

There are various types of import restrictions and they are:

1. Import duties: import duties are tariffs or taxes imposed on imported goods to make them more expensive thereby discouraging the purchase and use of imported goods.

2. Import quota: this is a restriction on the volume of imported goods that would be allowed into the country at a particular period of time or from a particular country.

3. Currency restrictions: this is used to restrict the amount of foreign currency used in the settlement of imported goods.

4. Prevention of the entry of illegal or harmful items into the country.