Suppose That the Offshore Assembly Provisions (OAP) of a Country

question 22

Multiple Choice

Suppose that the offshore assembly provisions (OAP) of a country A are extended to a final good X that is imported as well as produced domestically. This action will most likely

• A) stimulate production in country A of components to final good X.
• B) stimulate production in country A of final good X.
• C) raise the price of imports of final good X to consumers in country A.
• D) cause foreign assemblers of final good X to use relatively more components of X that Are supplied by countries other than country A.

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Definitions:

Foreign-Owned Company

A business entity that is owned by individuals or corporations from a country different from where the company operates.

Empowerment

The process of granting individuals or groups more power and responsibility to make decisions and control over their work or life situations.

Decision-Making Authority

The power or right vested in an individual or group to make important decisions that affect the course of an organization or project.

Campaign Financing

The practice of raising and spending money to fund political campaigns, which is regulated by laws and practices varying significantly between jurisdictions.