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The personal computer industry in the United States needs to import all the components from overseas For one computer assembled in the United States $500 worth of components need to be imported

The personal computer industry in the United States needs to import all the components from overseas. For one computer assembled in the United States, $500 worth of components need to be imported. The value-added of the U.S. assembly is $100 per unit of computer. There is a 2% ad valorem tariff imposed on the imported components, and a 10% ad valorem tariff imposed on computers. What is the effective tariff rate of the computer industry.

 

Mar 19 2020 View more View Less

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