Assume That the United States Imports Automobiles from South Korea

question 124

Multiple Choice

Assume that the United States imports automobiles from South Korea at a price of $20,000 per vehicle and that these vehicles are subject to an import tariff of 20 percent. Also assume that U.S. components are used in the vehicles assembled by South Korea and that these components have a value of $10,000.
-Refer to Exhibit 4.1.Under the Offshore Assembly Provision of U.S.tariff policy, the price of an imported vehicle to the U.S.consumer after the tariff has been levied is

• A) $22,000.
• B) $23,000.
• C) $24,000.
• D) $25,000.

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