Suppose that in China computers are built from a combination of domestic and foreign parts. a. If a computer sells for $1,000 and the domestic value added is $600, what is the value of imported parts?...

Suppose that in China computers are built from a combination of domestic and foreign parts.

a. If a computer sells for $1,000 and the domestic value added is $600, what is the value of imported parts?

b. How does price change if the domestic value-added changes by 10 percent because of an increase in wages? (Assume that China cannot cause the world price to change.)

c. What is the effective rate of protection?

d. If a 10 percent tariff on the final good and a 20 percent tariff on imported parts is levied, what is the effective rate of protection for Chinese computer manufacturers?