Converting a quota into a tariff is easily accomplished by calculating what the ad valorem equivalent tariff (AVE) needs to be to achieve the same level of protection.

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Converting a quota into a tariff involves calculating the ad valorem equivalent tariff (AVE), which is the tariff rate that would provide the same level of protection or restriction on imports as the quota. This calculation takes into account the difference in domestic and international prices, as well as the quantity restrictions imposed by the quota, to determine the equivalent tariff rate.

Converting a Quota into a Tariff Is Easily Accomplished by Calculating