Salvatore
c08.tex
V2 - 11/15/2012
7:42 A.M.
Page 244
244
Trade Restrictions: Tariffs
*4.
Calculate the rate of effective protection when
t
(the nominal tariff on the final commodity) is 40
percent,
a
i
(the ratio of the cost of the imported
input to the price of the final commodity in the
absence of tariffs) is 0.5, and
t
i
(the nominal tariff
on the imported input) is 40 percent.
5.
For the given in Problem 4, recalculate
g with the
following values of
t
i
:
(a)
t
i
= 20 percent.
Do'stlaringiz bilan baham: