When a Government Allows Raw Materials and Other Intermediate Products

question 31

Multiple Choice

When a government allows raw materials and other intermediate products to enter a country duty free, this generally results in a(an)

• A) effective tariff rate less than the nominal tariff rate.
• B) nominal tariff rate less than the effective tariff rate.
• C) rise in both nominal and effective tariff rates.
• D) fall in both nominal and effective tariff rates.
• E) rise in only the effective tariff rate.

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Definitions:

Express Authorization

Explicit permission granted by one party to another to perform actions or activities on its behalf.

Principal

In agency law, one under whose direction an agent acts and for whose benefit that agent acts.

Implied Trust

A trust not created by explicit words but inferred by law to avoid injustice or to reflect the presumed intention of the parties involved.

Unjust Enrichment

A legal principle where one party is unjustly benefited at the expense of another, often requiring restitution to the party disadvantaged.