The effective rate of protection measures
A)the difference between domestic and foreign prices of the import.
B)the efficiency with which the tariff is collected at the customhouse.
C)the "true" ad valorem value of a tariff.
D)the protection given by the tariff to domestic value added.
E)the quota equivalent value of a tariff.

Question

Quizplus · Accepted Answer

The effective rate of protection measures the protection given by the tariff to domestic value added, considering both the tariffs on final goods and the tariffs on inputs used in production.

The Effective Rate of Protection Measures