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?

Show Answers

Encourage foreign computer manufacturers to source more components from countries other than the U.S.Lead to higher retail prices for computers in the U.S. marketBoost the overall number of computers produced within the United StatesStimulate greater manufacturing of computer parts within the United StatesReduce the demand for domestically produced computer components

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.