Teaching UGC NET Mock Test Series 2025 (Paper 1 & 2) Business Studies Finance and Trade International Trade
If the nominal tariff rate (t) on consumers of the final commodity is 10 percent; the ratio of the cost of the imported input to the price of the final commodity in the absence of tariffs ai = 0.8; and the nominal tariff rate on the imported input ti = 20%, then find the rate of effective protection.
1
10%
2
8%
3
3%
4
- 30%