4. Study Questions and Problems #4 Suppose the United States imposes a tariff of 4% on foreign automobiles. If a foreign automobile costs $40,000, the amount of the tariff equals million. S per car. If 30,000 foreign cars are imported, then the total revenue raised for the U.S. Treasury is S True or False: Imposing tariffs on foreign goods can lead to retaliatory tariffs being put on domestically produced goods. True O False

International Financial Management
14th Edition
ISBN:9780357130698
Author:Madura
Publisher:Madura
Chapter2: International Flow Of Funds
Section: Chapter Questions
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4. Study Questions and Problems #4
Suppose the United States imposes a tariff of 4% on foreign automobiles. If a foreign automobile costs $40,000, the amount of the tariff equals
million.
S
per car. If 30,000 foreign cars are imported, then the total revenue raised for the U.S. Treasury is S
True or False: Imposing tariffs on foreign goods can lead to retaliatory tariffs being put on domestically produced goods.
True
O False
Transcribed Image Text:4. Study Questions and Problems #4 Suppose the United States imposes a tariff of 4% on foreign automobiles. If a foreign automobile costs $40,000, the amount of the tariff equals million. S per car. If 30,000 foreign cars are imported, then the total revenue raised for the U.S. Treasury is S True or False: Imposing tariffs on foreign goods can lead to retaliatory tariffs being put on domestically produced goods. True O False
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