Article Summary In a September 2017 Ruling, the U.S. International Trade Commission

question 81

Multiple Choice

Article Summary
In a September 2017 ruling, the U.S. International Trade Commission (ITC) found that imports of solar panels harmed U.S. manufacturers, opening the door for the Trump administration to impose tariffs on foreign solar panels and modules. The initial complaint to the ITC was filed in early 2017 by bankrupt solar panel manufacturer Suniva, who argued that a rapid increase in imports of inexpensive foreign product put U.S. manufacturers at risk. The decision was opposed by many in the solar panel industry, arguing that tariffs will hurt the industry as a whole. While Suniva commissioned a report that showed devastating job losses without industry protection, an independent analysis by Bloomberg New Energy Finance found a ruling for Suniva would, at most, only create 6,400 jobs and "downstream job losses would almost certainly exceed any manufacturing gains."
Source: Tom DiChristopher, "US trade agency rules imports harmed solar panel makers, setting up Trump tariff decision," cnbc.com, September 22, 2017.
-Refer to the Article Summary.All else equal, if the Trump administration decides to enact protectionist measures, such as a tariff, against foreign solar panels, the price of solar panels in the United States will ________ and the quantity of solar panels demanded in the United States will ________.

• A)increase; increase
• B)increase; decrease
• C)decrease; increase
• D)decrease; decrease

Understand the importance of liquidity and its impact on a firm’s operations.

Grasp the concept of financial leverage and its effects on a firm's capital structure.

Calculate and interpret operating cash flow.

Understand the significance of tax rates in financial decision-making.

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Definitions:

E-mail

A method of exchanging digital messages over the Internet between individuals or groups, providing a quick and efficient form of communication.

Criminal Penalties

Legal sanctions that may be imposed for committing a crime, which can include fines, imprisonment, or other forms of punishment.

Tax Evasion

The illegal practice of not paying taxes by individuals, companies, and trusts, by means such as misrepresenting income to the tax authorities.

Careless Disregard

A lack of reasonable care or effort in the fulfillment of duties or responsibilities, often leading to errors or negative outcomes.