Tariff escalation encourages:
A) final processing of the product in the home country.
B) final processing of the product in developing countries.
C) final processing of the product and processing of component production in the home country.
D) final processing of the product and processing of component production in developing countries.
E) industrial development in developing countries.

Question

Quizplus · Accepted Answer

Tariff escalation refers to the practice of imposing higher tariffs on processed goods than on raw materials. This encourages the final processing of products in the home country to avoid higher import costs on processed goods.

Tariff Escalation Encourages