In 2015, South Africa signed an agreement with the United States regarding trade. It allows 65,000 tons of bone-in chicken to be imported in to South Africa each year.
This is an example of
Responses
A a quota.a quota.
B a tariff.a tariff.
C a subsidy.a subsidy.
D a embargo.
A quota
The correct answer is A) a quota.
To determine the correct answer, we need to understand the definitions of the given options and analyze the situation described.
A) A quota is a restriction on the quantity of goods imported or exported. In this case, the agreement specifies an allowed amount of bone-in chicken to be imported into South Africa, so it matches the description of a quota.
B) A tariff is a tax imposed on imported or exported goods, typically by the government. There is no mention of a tax being imposed on the bone-in chicken in the given scenario, so a tariff is not applicable.
C) A subsidy is financial assistance given by the government to support certain industries or products. Again, there is no mention of financial assistance being provided to the bone-in chicken industry in this case, so a subsidy is not applicable.
D) An embargo is a complete ban on trade with a particular country or product. The agreement described in the scenario explicitly allows the importation of bone-in chicken, so an embargo is not applicable.
Based on the above analysis, the correct answer is A) a quota, as it matches the description of the situation where a specific quantity of bone-in chicken is permitted to be imported into South Africa each year.