An increase in the tariff on semiconductors lowers the effective rate of protection of computer producers.

Question

Quizplus · Accepted Answer

Semiconductors are a key component in the production of computers. An increase in their tariff makes them more expensive for computer producers to import, ultimately lowering their effective rate of protection. This means that computer producers are less protected from competition and may be at a disadvantage compared to producers in countries with lower or no tariffs on semiconductors.

An Increase in the Tariff on Semiconductors Lowers the Effective