This guided activity is comprised of two parts. Part 1 (Instruction) walks you through an example. Part 2 (Independent Practice) is where you will take what you
have learned in the example and apply it to your own chosen scenario. You will complete Part 2 and submit to your instructor. Each assignment builds upon what
you have done before, so it is imperative that you complete each assignment. The guided activities will be submitted in each module.
Part 2 (Independent Practice)
If we assume that the overseas facility can be leased for $200,000 per year, and the cost of building and operating a new facility in the United States would cost
$550,000, what is the minimum tariff that would make it worthwhile to move the production facility to the United States from China?