Business, 20.10.2020 04:01 babysitterwick
TeleGlobal is an American firm producing TV sets. TeleGlobal imports TV set components from Taiwan and assemb them domestically. Suppose that in the United States, a TV set sells for $500 and that 80% of the TV set's value comes from the value of the imported components. The United States imposes a 30% tariff on TV sets and a 10% tariff on the TV set's components. Assume that costs of producing components are the same in the United States a Taiwan. Based on the information provided, the effective rate of protection that TeleGlobal receives from the tariff is:.
a. -17.5%
b. 70.0%
c. 110.0%
d. 24.4%
e. 47.5%
Answers: 2
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TeleGlobal is an American firm producing TV sets. TeleGlobal imports TV set components from Taiwan a...
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