The value of imported leather is 70 of the value of the


Assume the following: the world price of shoes is $100 per pair. The value of imported leather is 70% of the value of the shoes (or $70). The tariff on shoes is 20% while the tariff on leather is 15%. Calculate the Values Added and use them to derive the Effective Rate of Protection or ERP.

Solution Preview :

Prepared by a verified Expert
Business Economics: The value of imported leather is 70 of the value of the
Reference No:- TGS02235353

Now Priced at $20 (50% Discount)

Recommended (91%)

Rated (4.3/5)