Final answer:
The question concerns a tire company's economic considerations for tire selling, carrying costs, and the effects of tariffs on business operations and the broader economy.
Step-by-step explanation:
The question presented involves the local distributor for a national tire company and encompasses topics of annual carrying costs, ordering costs, and potential impacts of tariffs on the market. Specifically, the question mentions the expectation of selling a certain number of tires and provides cost figures that are essential for calculations related to the economics of supply chain management. Furthermore, the detailed information about the impact of a tariff on Chinese tires reveals the complex economic considerations, such as the balance between protecting domestic jobs and potential broader negative repercussions, including job losses in other sectors and the increased financial burden on consumers.
It shows how a tariff can help domestic producers by saving jobs, but also how it creates broader economic costs. In this particular case, the tariff led to significant expenses for U.S. consumers and affected employment beyond the tire sector. Economic policies such as tariffs have nuanced impacts that must be carefully analyzed to understand their full implications on the economy and different stakeholders.