The Import of Apple IPads Assembled in Shanghai at a $295

question 21

Multiple Choice

The import of Apple iPads assembled in Shanghai at a $295 wholesale price ($213 cost and $82 profit margin) adds more than it should to the U.S.trade deficit with China because

• A) Chinese assembly labor represents only 47 % of the wholesale cost
• B) the iPad's popularity has triggered an enormous number of unit sales
• C) wholesale prices only count in the trade statistics if final product prices are higher
• D) as with foreign-assembled minivans,most of the subassembly components come from the U.S.
• E) the Chinese yuan is a managed currency

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Definitions:

Interest in Land

Legal rights or investments in real property, including ownership or usage rights.

Main-Purpose Rule

A legal principle that if the main purpose of a guarantor to sign a surety agreement is to secure a personal benefit, the agreement does not have to be in writing to be enforceable.

Secondary Obligation

An obligation that arises indirectly or as a result of another primary obligation, often in legal or financial contexts.

Statute of Frauds

A legal concept that requires certain types of contracts to be written and signed to be enforceable.