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- Subject
- Tariffseconomics-mcqs › tariffs
- Published
- 28 May 2019
- Last updated
- 28 May 2026
If the United States grants offshore assembly provisions (OAP) to fully assembled computers that are imported and then further processed domestically, what is the likely outcome of this policy?
Multiple choice question for Tariffs. Select an option, then review the explanation below.
Explanation
Granting offshore assembly provisions typically incentivizes the use of domestic components in the assembly process. As a result, this policy encourages increased production of computer parts inside the United States to meet the requirements, thereby enhancing the domestic components industry.
More Tariffs MCQs
Practice related questions from the same subject.
- 1.Under a free trade system, what is the total worth of imports?
- 2.What do empirical studies generally indicate about the nature of U.S. import tariffs?
- 3.Which of the following statements about government trade policies is NOT typically true?
- 4.If the nominal tariff on finished computers is 12% and the weighted average nominal tariff on the inputs for making computers is 18%, what can be said about the effective rate of protection for the computer sector?
- 5.If Pakistan applies a tariff on ballpoint pens consisting of 25 rupees per pen plus 12% of the pen's price, what type of tariff is this an example of?