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22 February, 09:01

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)

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  1. 22 February, 10:24
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    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%
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