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A what is the nominal rate of protection 500 b what is the

1. You are given the following information:

The world price of computers is $10,000
The value of imported components is $1,000
Tariff on imported computers is 20%.

(a) What is the nominal rate of protection? ($500)

(b) What is the effective rate of protection? ($500)

Now along with a tariff on imported computers of 20%, suppose that a 30% tariff is placed on the imported components used to make computers.

(d) What is the new effective rate of protection? ($500)

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