What Is an Ad Valorem Import Duty

question 7

Multiple Choice

What is an ad valorem import duty?

• A) A requirement that a parent buys the output of a foreign subsidiary
• B) A tariff charged by a government on the invoice price of goods coming into its country
• C) A requirement that a subsidiary acquires its material inputs from a foreign parent
• D) A tax charged on intercompany transactions

---

Definitions:

Skeleton

The internal framework of the body composed of bones and cartilage that provides support and protection.

Intervertebral Discs

The soft, cushion-like structures located between the vertebrae of the spine, providing shock absorption and flexibility.

Collagen

A protein that is the main component of connective tissues in animals, providing strength and structure.

Strength

The capacity of an object or individual to withstand great force or pressure, or in a biological context, the muscle's ability to generate force.