What would be the effective rate of protection on bicycles in China if China places a 50

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What would be the effective rate of protection on bicycles in China if China places a 50 percent tariff on bicycles, which have a world price of $200, and no tariff on bike components, which together have a world price of $100?

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International Economics Theory and Policy

ISBN: 978-0273754206

9th Edition

Authors: Paul R. Krugman, Maurice Obstfeld, Marc J. Melitz

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Question Posted: Oct 24, 2012 11:41 PM

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What would be the effective rate of protection on bicycles in China if China places a 50

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The effective rate of protection ERP is defined as V t V w V w where V t is the va...View the full answer

International Economics Theory and Policy

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