The offshore assembly provision in the U.S.
A. Provides favorable treatment to U.trading pertners
B. Discriminates against primary product importers
C. Provides favorable treatment to products assembled abroad from U.manufactured components
D. Hurts the U.consumer
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Arguments for U.S. trade restrictions include all of the following except:
A. Job protection
B. Infant industry support
C. Maintenance of domestic living standard
D. Improving incomes for developing countries
For the United States, a foreign trade zone (FTZ) is
A site within the United States
B. A site outside the Unites States
C. Always located in poorer developing countries
D. Is used to discourage trade
Suppose that the United States eliminate its tariffs on steel imports, permitting foreign-produced steel to enter the U.S. market. Steel prices to U.S. consumers would be expected to:
A. Increase, and foreign demand for U.exports would increase.
B. Decrease, and foreign demand for U.exports would increase.
C. Increase, and foreign demand for U.exports would decrease.
Dease, and foreign demand for U.exports would decrease.
Exhibit 4.1: Assume that the United States imports automobiles from South Korea at a price of $20,000 per vehicle and that these vehicles are subject to animport tarrif of 20 percent. Also assume that U.S. components are used in the vehicle assemabled by South Korea and that these components have a value of $10,000.Refer to Exhibit 4.1. In the absence of the Offshore Assembly Provision of U.S. tariff policy, the price of an imported vehicle to the U.S. consumer after the tariff has been levied is:
A. $22,000
B. $23,000
C. $24,000
D. $25,000