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The manufacturing cost of leather belts in Brazil is 25% less than the manufacturing cost of them in Cuba. Even after transportation fees and tariff charges are added, it is still cheaper for a company to import leather belts from Brazil to Cuba than to manufacture leather belts in Cuba. The statements above, if true, best supports which of the following assertions?Choices:- Labour costs in Brazil are 25% below those in Cuba Importing leather belts from Brazil to Cuba will eliminate 25% of the manufacturing jobs in Cuba The tariff on leather belts imported from Brazil to Cuba is less than 25% of the cost of manufacturing leather belts in Cuba It takes 25% less time to manufacture one leather belt in Brazil than it does in Cuba

Question

The manufacturing cost of leather belts in Brazil is 25% less than the manufacturing cost of them in Cuba. Even after transportation fees and tariff charges are added, it is still cheaper for a company to import leather belts from Brazil to Cuba than to manufacture leather belts in Cuba. The statements above, if true, best supports which of the following assertions?Choices:- Labour costs in Brazil are 25% below those in Cuba Importing leather belts from Brazil to Cuba will eliminate 25% of the manufacturing jobs in Cuba The tariff on leather belts imported from Brazil to Cuba is less than 25% of the cost of manufacturing leather belts in Cuba It takes 25% less time to manufacture one leather belt in Brazil than it does in Cuba

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Solution

The assertion that is best supported by the statements above is: "The tariff on leather belts imported from Brazil to Cuba is less than 25% of the cost of manufacturing leather belts in Cuba". This is because the text states that even after adding transportation fees and tariff charges, importing leather belts from Brazil is still cheaper than manufacturing them in Cuba. This implies that the combined cost of these additional charges is less than the difference in manufacturing costs between the two countries, which is 25%. The other options are not directly supported by the information given.

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