Respuesta :
Import permits are distributed on the basis of fixed favoritism if a government gives them out for free to businesses or individuals without inviting applications or engaging in negotiations.
How does fixed favoritism work?
A pact between two countries to impose tariffs on each other at levels equal to or lower than those imposed on any other 43 country. All of these nations' MFN partners must benefit from any reduction in tariffs imposed by one of these countries on a third country. Part of the 1974 U.S. Trade Act is Section 301.
when a sizable nation implements an import cap?
In the event of a large country, an import quota will result in a decrease in the foreign price and an increase in the domestic price. A quota rent is the differential between domestic and foreign prices following the implementation of the quota. A quota on imports will limit the amount of imports to that amount.
Learn more about reduction in tariffs: https://brainly.com/question/2489754
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