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g=
Problem 5
a) G=
b) G=
0,4−0,5.0,2
1−0,5
0,4−0,5.0
c) G =
d) G =
๐Ÿ−๐’‚๐’Š
= 0,6
= 0,8
1−0,5
0,4−0,5.0,8
1−0,5
0,4−0,5.1
1−0,5
๐’•−๐’‚๐’Š.๐’•๐’Š
=0
= -0,2
Problem 6
a) G =
0,4−0,6.0,2
1−0,6
= 0,7
b) From examining Problems and the results obtained with them, we can
reach the following important conclusions on the relationship between the
rate of effective protection (g) and the nominal tariff rate (t) on the ๏ฌnal
commodity:
1. If ai = 0, g = t.
2. For given values of ai and ti, g is larger the greater is the value of t.
3. For given values of t and ti, g is larger the greater is the value of ai.
4. The value of g exceeds, is equal to, or is smaller than t, as ti is smaller
than, equal to, or larger than t.
5. When ai.ti exceeds t, the rate of effective protection is negative.
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