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Suppose an Italian Shoe Manufacturer Wants to Sell a Pair

Question 109

Multiple Choice

Suppose an Italian shoe manufacturer wants to sell a pair of shoes to a U.S. customer, but the U.S. government adds a 10% tax to the price of that pair of shoes at the U.S. border. This is an example of:


A) a quota.
B) a unit tax tariff.
C) dumping.
D) an ad valorem tariff.

Correct Answer:

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