The effective rate of protection for a product can be negative.

Name: The effective rate of protection for a product can be negative.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The effective rate of protection can be negative if the tariffs on the inputs (raw materials) are higher than the tariffs on the final product, making the effective protection for domestic production of the final product less than zero, thereby disadvantaging it compared to importing the final product directly.

The Effective Rate of Protection for a Product Can Be