A small country, Country S, has instituted a hefty tax on imported electronics in an attempt to protect the largest company and employer in the country. As a result of this import tax, the national electronics company is now able to compete in the electronics market.

Which of the following can be inferred from the information above?

A. Only small quantities of electronics from companies outside of Country S will now be sold in Country S.

B. To take further advantage of the import tax, the national electronics company will expand its product line.

C. Electronics have become more expensive to import not only due to the added import taxes but also due to increased transportation costs.

D. Electronics are cheaper to produce outside Country S than inside Country S.

E. The national electronics company not only sells electronics products in Country S but also exports them to Country T and Country U.


Answers with explanations please.