With a compound duty,its "specific" portion neutralizes the cost disadvantage of domestic manufacturers that results from tariff protection granted to domestic suppliers of raw materials,and the "ad valorem" portion of the duty grants protection to the finished-goods industry.

Question

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The statement accurately describes how a compound duty works to provide both protection for domestic manufacturers of raw materials and finished goods industries.

With a Compound Duty,its "Specific" Portion Neutralizes the Cost Disadvantage