Suppose that the offshore assembly provisions (OAP) of the United States are granted to finished computers that are imported and produced domestically This policy will tend to ?
Correct answer: D. Increase the production of computer components in the United States
- A. cause foreign assemblers of computers to use more computer components that are supplied by countries other than the United States
- B. Increase the Price of computers to consumers in the United States
- C. Increase the Production of computers in the United States
- D. Increase the production of computer components in the United States
Explanation
Offshore assembly provisions reduce or remove duties on U.S.-made components assembled abroad and reimported, making those components more attractive to foreign assemblers. This tends to expand demand for, and production of, computer components in the United States.
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