Which of the following correctly states the formula to compute the rate of effective protection? Here g = the rate of effective protection to producers of final commodities, t = the nominal tariff rate on the final commodity, ti = the nominal tariff rate on the imported input, and ai = the ratio of the cost of the imported input to the price of the final commodity in the absence of tariffs.
Tap an option to check your answer.
Checking your account…
Trade policy: tariffs, quotas and protection has come up 63 times in 6 exams since 2010.
This question is on Dumping, effective protection and industrial policy, part of Trade policy: tariffs, quotas and protection in International Economics.
Price discrimination across borders, protection of value added, and trade-related industrial policy.
TestStop has 12 past-paper questions on this subtopic.
Question from the UGC-NET 2025 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.