Moderate

Which of the following groups would not benefit from an EU imports quota on Japanese cars ?

Correct answer: B. EU farmers who export grain

  • A. Eu consumers who buy electronics from Japan
  • B. EU farmers who export grain
  • C. employees of EU car manufacturers
  • D. Shareholders of German carmaker BMW

Explanation

A quota on Japanese cars can protect EU car producers and raise their employees’ and shareholders’ returns, while cheaper foreign currency may help consumers buying Japanese electronics. EU grain exporters do not receive a direct benefit and could even face Japanese retaliation.

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