Developing Countries Sometimes Encounter the Tariff-Escalation Policies of Advanced Countries

question 41

Multiple Choice

Developing countries sometimes encounter the tariff-escalation policies of advanced countries.This means that advanced countries

• A) impose higher tariffs on processed products than on primary products.
• B) impose higher tariffs on primary products than on processed products.
• C) impose identical tariffs on primary products and processed products.
• D) allow free trade on primary products and processed products.

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Definitions:

Principals

Individuals or entities that authorize agents to act on their behalf in business transactions.

Incentivizing Agents

Strategies to motivate individuals or entities acting on behalf of others or organizations towards desired behaviors or goals, often through rewards or benefits.

Agency Costs

Expenses and losses in value occurring when there is a conflict of interest between the principals (owners) and the agents (managers) of a company.

Longer Work Days

Extended periods of work hours in a single day beyond the standard working schedule.