Question

The world price of a refrigerator is $500. The value of imported components used to make the refrigerator is $269. The tariff on imported refrigerators is $89. What is the nominal rate of protection for refrigerators? ___% (round to two decimal places)

Answer 1

Answer:

Nominal rate of protection is 33.09%

Explanation:

The nominal rate of protection is the rate of tarrif levied on an imported item

which is nominal rate % x the Cost/Value of the item

=$89/$269

=33.09%