Chennai, Tamil Nadu
Effective Rate of Protection
- The effective rate of protection is used to estimate the protection really afforded to domestic producers at each stage of production, i.e., how much extra they can charge and still be competitive with imported goods.
- If the total value of the tariffs on imported inputs exceeds that on the output, the effective rate of protection is negative, i.eThe industry is discriminated against in comparison with the imported product.
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