Category: Tariffs

The effective rate of protection ?

A. distinguishes between tariffs that are effective and those that are ineffective
B. is the minimum level at Which a tariff becomes effective in limiting imports?
C. shows how effective a tariff is in raising revenue for the government
D. shows the increase in value added for domestic production that a particular tariff structure makes possible, in percentage terms

A foreign-trade zone (FTZ) is ?

A. a regional area within which trade with foreign nations is allowed
B. a free trade agreement among several nations
C. designed to limit exports of manufactured goods by placing export taxes on goods made within the zone
D. designed to promote exports by deferring imports duties on intermediate inputs and waving such duties if the final product is re-exported rather than sold domestically

Suppose that the offshore assembly provisions (OAP) of the United States are granted to finished computers that are imported and produced domestically This policy will tend to ?

A. cause foreign assemblers of computers to use more computer components that are supplied by countries other than the United States
B. Increase the Price of computers to consumers in the United States
C. Increase the Production of computers in the United States
D. Increase the production of computer components in the United States