If the Tariff on Components Is Lower Than the Tariff

question 19

Multiple Choice

If the tariff on components is lower than the tariff on the final product then:

• A) the nominal tariff is zero.
• B) the final product receives low protection.
• C) consumers will clearly benefit.
• D) the effective rate of protection on the final product is higher than it looks.
• E) all of the above

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Definitions:

Adequate Records

Comprehensive and accurate documentation of financial transactions necessary for accounting and tax compliance.

Payee

In a monetary transaction, the recipient of the payment.

Maker

In a financial context, the maker is the party that creates or issues a financial instrument, such as a check or promissory note.

Cashier

An employee who handles customer transactions and the management of money in a retail environment, often responsible for processing cash, credit, and other forms of payment.