Problem
1. Do you think that it is ever possible to obtain a good indication of the precise degree of protection accorded by a country to its import-substitute industries? Why or why not? (Remember that, in addition to tariffs, protection is also provided by various nontariff barriers.)
2. Suppose that a country announces that it is moving toward free trade by reducing its tariffs on intermediate inputs while maintaining its tariffs on final goods. What is your evaluation of the announced "free-trade" direction of the country's policy?