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What is the domestic value-added by HP

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Question - Use the following information to answer questions: Hewlett Packard (HP), an American company produces pocket audio recorders and sells them for $350, the same price level of foreign competitors selling on the global market pre-tariff. In order to produce each recorder, HP needs to import electronic components worth $150 pre-tariff. Suppose there is no tariff imposed on the U.S. market, what is the domestic value-added by HP?

A. $220

B. $200

C. $300

D. $500

Reference no: EM133132262

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