Cotton Quota (Scenario)
Cotton growers in the nation of Zanzi export nearly 700,000 bales of cotton every year. Zanzi is the home country for a fabric manufacturing facility that exports high-quality cotton fabric around the world. The government imposed a quota of 1 million bales of cotton that can be imported into Zanzi every year. The local fabric manufacturer is lobbying the government to remove the quota on cotton.
-Which of the following questions would be most important for government officials to evaluate when considering the controversy over the cotton quota?
A) What would be the short-term effect of additional agricultural quotas?
B) What other nations utilize agricultural quotas and what are the effects?
C) Does the government of Zanzi impose heavy duties on dumping?
D) What will be the long-term effect of the cotton quota on the Zanzi economy?

Question

Quizplus · Accepted Answer

The long-term effect of the cotton quota on the Zanzi economy is most relevant to understanding the broader implications of the quota policy, including its impact on the fabric manufacturing sector, cotton growers, and the overall economic health of Zanzi.

Cotton Quota (Scenario) Cotton Growers in the Nation of Zanzi Export Nearly 700,000