If the U.S.imposes a quota on cotton,then
A)both exports and imports of other goods will rise.
B)exports of other goods will rise and imports of other goods will fall.
C)exports of other goods will fall and imports of other goods will rise.
D)both imports and exports of other goods will fall.

Question

Quizplus · Accepted Answer

Imposing a quota on cotton would mean a restriction on the quantity of cotton that can be imported into the United States from other countries. As a result, the exports of other goods from the U.S. would fall because the countries affected by the quota may retaliate and impose similar restrictions on imports of U.S. goods. At the same time, the imports of other goods into the U.S. would rise because the countries affected by the quota would look for alternative markets to export their goods.

If the U.S.imposes a Quota on Cotton,then