If the domestic value added before an import tariff for a product is $500 and the domestic value added after the tariff is $550, the effective rate of protetion is:
A. 5 percent
B. 8 percent
C. 10 percent
D. 15 percent
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When a tariff on imported inputs exceeds that on the finished good,
A. The nominal tariff rate on the finished product would tend to overstate its protective effect
B. The nominal tariff rate would tend to understate it's protective effect
C. It is impossible to determine the protective effect of a tariff
D. Tariff escalation occurs
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
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
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