What would be the effective rate of protection on bicycles in China if China places a 45 percent tariff on bicycles, which have a world price of $210, and no tariff on bike components, which together have a world price of $110? The effective rate of protection (ERP) is percent. (Round your answer to two decimal places.)
What would be the effective rate of protection on bicycles in China if China places a 45 percent tariff on bicycles, which have a world price of $210, and no tariff on bike components, which together have a world price of $110? The effective rate of protection (ERP) is percent. (Round your answer to two decimal places.)
Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter16: Gaining From International Trade
Section: Chapter Questions
Problem 9CQ
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What would be the effective rate of protection on bicycles in China if China places a 45 percent tariff on bicycles, which have a world
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