Why Did the U

question 34

Multiple Choice

Why did the U.S.price of imports of compact trucks (like the Toyota
Tacoma) not increase by 25% when the U.S.Customs Service
Reclassified them as "complete or unfinished trucks" with a tariff of
25%?

• A)U.S.truck dealers that retailed imported compact trucks lowered their retail prices and absorbed part of the tariff.
• B)U.S.consumers negotiated lower retail prices from U.S.truck dealers selling imported compact trucks.
• C)The U.S.government decided not to collect the 25% tariff on imported Japanese compact trucks and instead made them subject to
• Voluntary export restraints.
• D)Japanese truck manufacturers lowered their prices on trucks sold in the U.S.market and absorbed part of the tariff.

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Definitions:

Commercial Security Division

A Commercial Security Division specializes in providing security services and solutions to businesses, including surveillance, alarm systems, and access control.

Variable Selling Expense

Expenses that change in proportion to sales volume, including fees for commissions and charges for shipping.

Transfer Price

The price at which goods or services are traded between departments or subsidiaries within the same organization.

Selling Division

The segment of a company responsible for selling products or services, often considered in transfer pricing situations.