The offshore assembly provision in the U.S.
A) Provides favorable treatment to U.S.trading partners
B) Discriminates against primary product importers
C) Provides favorable treatment to products assembled abroad from U.S.manufactured components
D) Hurts the U.S.consumer

Question

Quizplus · Accepted Answer

The offshore assembly provision in the U.S. provides favorable treatment to products assembled abroad from U.S. manufactured components. This means that products manufactured using U.S. components enjoy preferential treatment in the U.S. market. However, this provision may also create incentives for companies to move their manufacturing operations abroad in order to take advantage of the benefits offered by this provision. This can have negative effects on U.S. workers and the domestic manufacturing industry.

The Offshore Assembly Provision in the U.S