ECONOMICS (CBSE/UGC NET)

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ECONOMICS

PROPERTY RIGHTS

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
After the US government announced that it would impose a tariff on steel, Harley-Davidson, a producer of motorcycles, decided to move some of its production chains away from the US. The spokesman explained that the company expected the cost of steel in the US to increase sharply after the tariff was imposed. The move could reduce costs.This is an example of using ____ to solve the problem of ____ .
A
government command ____ ‘how to produce’
B
government command ____ ‘for whom to produce’
C
market mechanism ____ ‘how to produce’
D
market mechanism ____ ‘for whom to produce’
Explanation: 

Detailed explanation-1: -Production of Harley-Davidson motorcycles sold in Europe will move from U.S. factories to facilities overseas, the Milwaukee-based company announced Monday, a consequence of the retaliatory tariffs the EU is imposing on American exports in an escalating trade war with the Trump administration.

Detailed explanation-2: -Harley-Davidson said on Monday it would move production of motorcycles shipped to the European Union from the United States to its international facilities and forecast the trading bloc’s retaliatory tariffs would cost the company $90 million to $100 million a year.

Detailed explanation-3: -Harley-Davidson will move some production out of US after retaliatory tariffs. President Donald Trump’s trade policy is backfiring on Harley-Davidson. The company is shifting some production of motorcycles for European customers out of the United States to avoid EU retaliatory tariffs.

Detailed explanation-4: -The quintessential American brand, Harley-Davidson, is shifting some production overseas to avoid EU regulatory tariffs-but not without some commentary from the President Donald Trump.

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