When Material Inputs Enter a Country at a Very Low

question 132

True/False

When material inputs enter a country at a very low duty while the final imported product is protected by a high duty,the result tends to be a high rate of protection for domestic producers of the final product.

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Definitions:

Capital

Refers to wealth in the form of money or other assets owned by a person or organization or available for a purpose such as starting a company or investing.

Direct Investment

The acquisition of a controlling interest in a foreign business by making investments such as purchasing the company's stock directly.

Capital Commitments

The funds that a company plans to spend on long-term assets or projects over a period of time.

Ownership

The state or fact of possessing something, which can include both tangible assets (like property) and intangible assets (like intellectual property).