GlobalCell is an American firm producing cell phones. GlobalCell imports cell phone components from Japan and assembles them domestically. Suppose that in the United States, a cell phone sells for $100 and that 60% of the cell phone's value comes from the value of the imported components. The United States imposes a 30% tariff on cell phones and a 10% tariff United States and Japan and that transit costs are nonexistent. the cell phone's components. Assume that costs of producing components are the same in the Based on the information provided, the effective rate of protection that GlobalCell receives from the tariff is A. 60% B. -20% C. -13.3% D. 26.7%

GlobalCell is an American firm producing cell phones. GlobalCell imports cell phone components from Japan and assembles them domestically. Suppose that in the United States, a cell phone sells for $100 and that 60% of the cell phone's value comes from the value of the imported components. The United States imposes a 30% tariff on cell phones and a 10% tariff United States and Japan and that transit costs are nonexistent. the cell phone's components. Assume that costs of producing components are the same in the Based on the information provided, the effective rate of protection that GlobalCell receives from the tariff is A. 60% B. -20% C. -13.3% D. 26.7%

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Price $36 $30 $26 I I Home market S D 20 40 80 100 Quantity Price 40 World market I 80 X* + t ·X* Imports The graphs show the case for a tariff imposed by a large country. According to these graphs, if the world price of the product is given as $30 and a $10 tariff is imposed, then the new price after the tariff is $36. So the terms-of-trade gain is 40 80 10 160
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Tricky question. Consider the diagram below, depicting the United States Market for Airplanes (hundreds of jets on the horizontal axis, and millions of dollars on the vertical axis). Suppose around the world, a 2 (million dollar) tariff is placed on United States Airplanes. What will exports of planes now be (round to one significant digit). Tricky question. Consider the diagram below, depicting the United States Market for Airplanes (hundreds of jets on the horizontal axis, and millions of dollars on the vertical axis). Suppose around the world, a 2 (million dollar) tariff is placed on United States Airplanes. Given exports, about how much will United States producers of airplanes wind up paying in tariffs?
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The box said higher or lower for the 1 question an OA. win: lose OB. lose: win OC. lose: lose OD. win: win The United States exports athletic coaching services and imports coffee. The price of athletic coaching services in the United States is without international trade. As a result of trade in athletic coaching services, U.S. producers of athletic coaching services and U.S. consumers of athletic coaching services Click to select your answer. Show Transcribed Text The box said higher or lower for the 1 question 5 OA win; lose OB. lose; win OC. win: win OD. lose; lose C 3 C The price of coffee in the United States is trade. As a result of trade in coffee, the U.S. producers of coffee with international trade than with international trade than without international and U.S. consumers of coffee T tri A