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Your boss in the U.S. home office wants to know your perspec

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Your boss in the U.S. home office wants to know your perspective on the following. How do international sanctions, tariffs, quotas, and trade restrictions affect international trade and costs of production?

How do tariffs and sanctions on the import of auto engines into the U.S. affect production and costs at Acme?

Do you agree with trade restrictions? When do you think they are successful? Why or why not?

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All these measures are to regulate cross border transactions. These are the ways to promote or restrict the import or export from one country to other countries.

Let us understand one by one. Quota is a quantity restriction by one country on the other countries in relation to imports. For example, the USA can impose restriction on Vietnam on the imports of Vietnamese catfish of not more than 10 thousand tones per year. Therefore in any one year Vietnam cannot go over this limit.

Thus it can affect the Acme's cost of production as it ...

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