Question

Landing Service is a lawn furniture company that has been around for many years. It is known for its ability to produce furniture more efficiently than any other company in the nation. In truth, no other companies in any other nation come close. Landing Service has shipped many of its products internationally. In fact, 80 percent of its profits come from international sales. However, the Italian government has imposed a tax on imported furniture items to protect local companies. The Brazilian government, on the other hand, has imposed taxes on Landing Service products due to the government wanting a piece of the pie.
Landing Service initially thought that these taxes were unfair because it was being singled out. However, after Landing Service contacted the organization that had the power to mediate this situation, the furniture company realized that the taxation it was subjected to was legal and that there was nothing it could do about it.
Refer to Landing Service. Because the company is known for its ability to produce lawn furniture more efficiently than any other company in the world, the company must have a(n) ____ advantage.
a. total
b. relative
c. comparative
d. proportional
e. absolute
Refer to Landing Service. What type of tax has the Brazilian government imposed on the company?
a. Import duty
b. Embargo
c. Revenue tariff
d. Protective tariff
e. Nontariff barrier

Answer 1

Answer:

Landing Service

1. Refer to Landing Service. Because the company is known for its ability to produce lawn furniture more efficiently than any other company in the world, the company must have a(n) ____ advantage.  

e. absolute

2. Refer to Landing Service. What type of tax has the Brazilian government imposed on the company?

a. Import duty

Explanation:

Landing Service enjoys absolute advantage with its ability to produce furniture more efficiently than any other company in the world.  It implies that Landing Service can produce furniture with lesser input resources than other furniture companies in the world.

Import duty, in this scenario, refers to the tax imposed by the Brazilian government on Landing Service's furniture. This tax increases the price of the furniture for the Brazilian importers and consumers.