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 best supports maintaining the existing cotton quota?
A) Zanzi cotton growers are protected from cheaper cotton imports.
B) Zanzi cotton growers have an advantage when they export cotton fabric to other countries.
C) The local fabric manufacturer pays high prices for cotton.
D) The local fabric manufacturer uses mostly Zanzi-grown cotton.

Question

Quizplus · Accepted Answer

Maintaining the existing cotton quota protects Zanzi cotton growers from potentially cheaper cotton imports, ensuring their market is not undercut by lower-priced foreign cotton. This helps sustain the local cotton growing industry.

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