Maurice Tutor

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  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 08 Oct 2017 My Price 5.00

United States bikes

Suppose that in the United States bikes are built from a combination of domestic and foreign parts. a. If a bike sells for $500 but requires $300 of imported parts, what is the domestic value added?

b. If a 20 percent tariff is levied on bikes of the same quality and with the same features, how do the price and the domestic value added change? (Assume that the United States cannot cause the world price to change.)

c. What is the effective rate of protection?

d. If, in addition to the 20 percent tariff on the final good, a 20 percent tariff on imported parts is levied, what is the effective rate of protection for U.S. bike manufacturers?

Answers

Maurice Tutor
(5)
Status NEW Posted 08 Oct 2017 08:10 PM My Price 5.00

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