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

Question

Quizplus · Accepted Answer

The effective rate of protection measures the protection given by the tariff to domestic value added. It calculates the percentage increase in the value of the final product resulting from the tariff on imported inputs.

The Effective Rate of Protection Measures