00:02
The scenario is tariff is placed on the import of chinese manufactured steel into the usa and the question is subdivided into four parts.
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Part a is impact on the car manufacturer in detroit, michigan after imposing tariff.
00:52
Here, the actual price of steel purchased by a car manufacturer in detroit, michigan will likely be affected after tariff is imposed.
01:41
Tariff is essentially a tax on imported steel into usa.
02:30
As a result, the price of chinese manufactured steel will rise due to the additional tariff expenses.
03:25
This increase in price will impact the car manufacturer as they rely on steel as an input for their production process and hence they will have to pay higher price for the imported steel.
04:38
This could potentially lead to higher cost for the car manufacturer.
05:00
Second part of this question is where does the tariff tax is collected and where does it end up? so, the tariff tax collected from the import of chinese manufactured steel will typically end up in the hands of us government which imposed these taxes.
06:41
The third part of this question is what would be the impact on the domestic production of steel after the imposition of the tariffs? so, the imposition of a tariff on chinese manufactured steel is intended to protect domestic steel producers by making imported steel more expensive...