Mcqs Clouds
mcqs.teswesm.com

Suppose that the nominal tariff rate on finished computers is 12 percent and that the weighted average of the nominal tariff rates on the inputs used in producing computers is 18 percent. Thus, the effective rate of protection for the computer industry must ?

A. be less than 12 percent and can be negative

B. be less than 12 percent but must be greater than zero

C. equal 6 percent

D. exceed 30 percent

Related Questions on Tariffs & Industrial Development Mcqs

Concerning a government’s trade policy, all the following generally apply except ?

A. economic downturn and recession generally result in greater protectionism

B. because domestic consumers outnumber domestic producer’s policy markers usually enact Free-trade policies to satisfy the consumer majority:

C. When domestic exporting companies are organized, policy tends to favor freer trade

D. Policy tends to favor freer trade in countries whose imports are inputs into critical industries