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What would be the effective rate of protection on bicycles in China if China places a...

Question:

What would be the effective rate of protection on bicycles in China if China places a 30 percent tariff on bicycles, which ha

What would be the effective rate of protection on bicycles in China if China places a 30 percent tariff on bicycles, which have a world price of $210, and no tariff on bike components, which together have a world price of $110? The effective rate of protection (ERP) is percent. (Round your answer to two decimal places.)

Answers

Arower of china places a 300 tariff on bicycle. Aworld price of $210. No tariff on bike components, which together have a worEffective rate of protection = 17-Vw To xoo 163-100 Kloo loo = 635 :. Effective rate of protection on bicycle a 634

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