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Cost of producing radios in country

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The cost of producing radios in Country Q is ten percent less than the cost of producing radios in Country Y. Even after transportation fees and tariff charges are added, it is still cheaper for a company to import radios from Country Q to Country Y than to produce radios in Country Y.

The statements above, if true, best support which of the following assertions?

  • Labor costs in Country Q are ten percent below those in Country Y. 
  • Importing radios from Country Q to Country Y will eliminate ten percent of the manufacturing jobs in Country Y. 
  • The tariff on a radio imported from Country Q to Country Y is less than ten percent of the cost of manufacturing the radio in Country Y. 
  • The fee for transporting a radio from Country Q to Country Y is more than ten percent of the cost of manufacturing the radio in Country Q. 
  • It takes ten percent less time to manufacture a radio in Country Q than it does in Country Y.

Reference no: EM131082586

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