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Suppose that the Ford Motor Company produces autos at its factory in Michigan for sale to American buyers. The firm imports some components used in auto production, such as seat belts and radios. These imported components represent 60 percent of the value of a finished Ford auto. Suppose that the nominal tariff rate on these components equals 10 percent and the nominal tariff rate on imported finished autos equals 20 percent. The 20 percent nominal tariff rate on finished imported autos provides Ford an effective rate of protection equal to: 30 percent 20 percent O 40 percent O 35 percent 

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Suppose that the Ford Motor Company produces autos at its factory in Michigan for sale to American buyers. The firm imports some components used in auto production, such as seat belts and radios. These imported components represent 60 percent of the value of a finished Ford auto. Suppose that the nominal tariff rate on these components equals 10 percent and the nominal tariff rate on imported finished autos equals 20 percent. The 20 percent nominal tariff rate on finished imported autos provides Ford an effective rate of protection equal to: O 30 percent O 20 percent O 40 percent O 35 percent Suppose that the Ford Motor Company produces autos at its factory in Michigan for sale to American buyers. The firm imports some components used in auto production, such as seat belts and radios. These imported components represent 60 percent of the value of a finished Ford auto. Suppose that the nominal tariff rate on these components equals 10 percent and the nominal tariff rate on imported finished autos equals 20 percent. The 20 percent nominal tariff rate on finished imported autos provides Ford an effective rate of protection equal to: O 30 percent O 20 percent O 40 percent O 35 percent