Tag Archives | Effective Rate of Protection

Effective Rate of Protection: Concept and Limitations | Economics

In this article we will discuss about:- 1. Concept of Effective Rate of Protection 2. Assumptions of Effective Rate of Protection 3. Importance 4. Limitations. Concept of Effective Rate of Protection: Until the early 1960's, the official rate of tariff was intended to discourage the import of final product and to promote the domestic production in the protected industry. The [...]

By |2018-03-15T11:34:36+05:30March 15, 2018|Protection|Comments Off on Effective Rate of Protection: Concept and Limitations | Economics

Effective Rate of Protection | Economics

When considering a tariff, one normally thinks of the duty com­pared to the cost of the import; thus a Rs 25 tax on a Rs 100 item would be a 25% tariff. Economists refer to this as the nominal tariff. However, the actual amount of protection is measured by something called an effective tariff. The effective rate compares the tariff [...]

By |2017-01-13T05:55:12+05:30January 13, 2017|Trade|Comments Off on Effective Rate of Protection | Economics
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