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Kipish [7]
2 years ago
7

True or False: When material inputs or intermediate products enter a country at a high duty while the final imported product is

protected by a low duty, the nominal tariff rate on the final product overstates the effective rate of protection
Business
1 answer:
Anettt [7]2 years ago
3 0

Answer:

The correct answer is True.

Explanation:

If the input tariff is small compared to the tariff for finished products, the nominal tariff rate will underestimate the effective degree of protection. For example, suppose that the tariff on imported parts is 0%, the tariff on finished products is 10%, and 80% of the cost of the product is imported resources. An effective level of protection will be: Therefore, a nominal tariff rate of 10% underestimates the effective degree of protection of 50%.

However, the tariff for imported components was 20%, while the tariff for finished products was 10%, and import units accounted for 80% of the cost of the product. Now the effective level of protection will be: In this case, the nominal tariff rate of 10% exaggerates the effective level of protection of -30%.

Thus, the effective level of protection will be greater than the nominal tariff if the nominal tariff for finished products exceeds the input tariff. The effective level of protection will be less than the nominal tariff if the nominal tariff for finished products is less than the input tariff.

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Gore Global is considering the two mutually exclusive projects below. The cash flows from the projects are summarized below.
d1i1m1o1n [39]

Answer:

D

Explanation:

Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested

IRR can be calculated with a financial calculator  

Flying Car

Cash flow in year 0 = -$200,000

Cash flow in year 1 = 50,000

Cash flow in year 2 = 50,000

Cash flow in year 3 =80,000

Cash flow in year 4 =100,000

IRR = 13%

To find the IRR using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.  

7 0
3 years ago
Chuck has $2,500 invested in a bank that pays 4% annually. The length of time it will take for his funds to double is closest to
Arada [10]

Answer:

The answer is 17.67 years.

Explanation:

Present value is $2,500

Future value of the money to be double of the present value. This means the future value will be $5,000($2,500 x 2)

Interest rate is 4%

Number of years or periods to reach this $5,000 is unknown. So we are looking for this.

To compute this number of periods, lets use Financial calculator.

I/Y = 4; PV= -2,500; FV= 5,000; CPT N= 17.67 years.

Therefore, the number of years to accumulate to $5,000 is 17.67 years

7 0
3 years ago
you hear about an economy with no change in the number of workers or capital. yet, production increases. what idea does this ill
olasank [31]

Answer:

It might be because of an increase in efficiency in the workforce or advances in technology. Hope it helps :)

Explanation:

8 0
3 years ago
Mike is applying for a home loan and wants to buy a house worth $150,000 in a neighborhood close to his work. however, he only h
hichkok12 [17]

Pay PMI (private mortgage insurance) which is the amount the lender charges to protect their interests in case the borrower stops paying and defaults on the loan.

6 0
2 years ago
Which of the following is an example of unsecured debt?
klemol [59]
According to apex it is medical bills
7 0
3 years ago
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