Answer:
effective rate of protection for the domestic is 46 %
Explanation:
given data
imposition = 20 percent
cost of material inputs = $100 per unit
world price = $175 per unit
solution
we get here Extra amount that is
Extra amount = world price × tariff mean ........................ 1
Extra amount = $175 × $20%
Extra amount = $35
and
So we get effective rate of protection for the domestic is
effective rate of protection = 35 ÷ (175-100)
effective rate of protection = 46 %
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Answer:
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Answer:
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