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When Compliance Costs Associated with the Rules of Origin Exceed

Question 17

Multiple Choice

When compliance costs associated with the rules of origin exceed the value associated with the reduction of the tariff, then rules of origin become:


A) an effective nontariff barrier to trade.
B) an effective tariff imposed on the foreign firm.
C) a non-effective nontariff barrier to trade.
D) a non-effective tariff imposed on the foreign firm.
E) None of the above

Correct Answer:

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