Import quotas Name Institution affiliation (Course) (Date) Import quotas are limitations that are put on the goods brought into a country from a foreign one. Since the times in the early 80's the automobiles imports have been restricted by the voluntary resistant agreement. The quotas are relatively not of lower costs. According to an estimation made last year the indication is that Americans paid $5 billion extra due to the import limits put in place. On the other hand the auto industry of the United States recorded earnings of $10 billion in terms of profit which was a record of the best sales. These sales were the best in record since 1979. Japanese people were permitted to ship 1.68 million cars to the United States yearly which resulted to a ceiling of 1.85 million. The prices of the imported cars were raised comfortably without any fear of losing customers to 7.3 percent from 10%. In 2014. Auto makers have made massive investments in emerging markets. The Smart joint partnerships with the Chinese companies is countable for a great positive returns benefit since it is one of the world’s most selling countries in the auto mobile industry. In the Africa and Middle East in over the coming five years will likely witness a strong and consistent automobile growth in the sales. Some countries shall be expected to record big improvement including Iran Egypt South Africa and Nigeria. REFERENCES Bergsten C.Fred Kimberly Ann Elliot Jeffrey J. Schott and Wendy E. Takacs Auction Quotas and United States Trade Policy Washington: Institute for international Economics 1987. Haynes Stephen E. and Joe A. stone “specification of supply behavior in international Trade ” Review of economics and statistics vol.65 November 1983 pp. 626-632. Carbaugh R. J. (2013). Contemporary economics: an applications approach. ME Sharpe. [...]
In 1980, automobile manufacturers in the United States asserted that import quotas be instituted on foreign-produced vehicles marketed in the United States. In a critical essay, elaborate on the costs and benefits of this policy and approach. Is the policy in effect? How have non-US manufacturers responded? Summarize the effects and discuss the trends of the past 35 years. Support your findings with additional academic references. Directions: Your essay should be at minimum five-pages in length, which does not include the title page, abstract, or required reference page, which are never a part of the content minimum requirements. Support your submission with course material concepts, principles, and theories from the textbook and at least three scholarly, peer-reviewed journal articles.