Suppose that the offshore assembly provisions (OAP) of a country A are extended to a final good X that is imported as well as produced domestically. This action will most likely
A) stimulate production in country A of components to final good X.
B) stimulate production in country A of final good X.
C) raise the price of imports of final good X to consumers in country A.
D) cause foreign assemblers of final good X to use relatively more components of X that Are supplied by countries other than country A.
Correct Answer:
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