What would be the effective rate of protection on bicycles in China if China places a...
4. Effective Rate of Protection Given the following information for industry X in country A, and assuming that at least some of input Y is imported, that one unit of Y is required for each unit of X, and that country A is a "small" country: Free trade price $120 $80 Nominal tariff rate 10% Final product X Input Y (only input to X) 15% a. The effective rate of protection (ERP) for industry X is % b. If the...
ECON4850/5850 Class Exercise - Effective Rate of Protection Suppose that desks sell for $500 in free trade Suppose desks are made out of wood, and that the wood needed to produce 1 desk costs $250 1. Suppose initially there is a 20% tariff on desks, calculate the NRP Use NRP = (Pp' - P FTP FT 2. Suppose there are 20% tariffs on both desks and wood, calculate ERP Use ERP =(VAD' - VA")/VADFT where VA - price of good...
This Question: 1 pt 36 of 50 (32 complete) This Test: 50 pts possible Suppose that in the United States laptops are built from a combination of foreign parts and domestic inputs a. Itf a laptop sells for $500 but requires $300 of imported parts, the domestic value added is s b. Assuming that the Unilted States cannot cause the world price to change, a 30 percent tariff levied on laptops of the same quality and with the same features...
1. The world price of a refrigerator is $520. The value of imported components used to make the refrigerator is $301. The tariff on imported refrigerators is $88, but there is a tariff of $83 on the imported components. What is the effective rate of protection for refrigerators? ___% (round to two decimal places) 2. In the graph above, Pw=30, Pdump=13, Q1=6, Q2=10, Q3=15, Q4=20, Q5=22. Germans are able to buy steel on the world market. The graph above shows...
Company EJ plans to build a new plant to manufacture bicycles. EJ sells its bicycles in the world market for $500 per bike. It could locate the plant in Province P, which levies a 25 percent tax on business Income. On the basis of the cost of materials and labor in Province P, EJ estimates that its manufacturing cost per bike would be $292 Alteratively, EJ could locate the plant in Province W which levies a 20 percent tax on...
Company EJ plans to build a new plant to manufacture bicycles. EJ sells its bicycles in the world market for $590 per bike. It could locate the plant in Province P, which levies a 25 percent tax on business income. On the basis of the cost of materials and labor in Province P, EJ estimates that its manufacturing cost per bike would be $364. Alternatively, EJ could locate the plant in Province W, which levies a 20 percent tax on...
Company EJ plans to build a new plant to manufacture bicycles. EJ sells its bicycles in the world market for $500 per bike. It could locate the plant in Province P, which levies a 25 percent tax on business income. On the basis of the cost of materials and labor in Province P. EJ estimates that its manufacturing cost per bike would be $292. Alternatively, EJ could locate the plant in Province W, which levies a 20 percent tax on...
A firm offers terms of 1/10, net 30. a. What effective annual interest rate does the firm earn when a customer does not take the discount? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What effective annual interest rate does the firm earn if the discount is changed to 2 percent? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places,...
A firm offers terms of 1.4/10, net 30. a. What effective annual interest rate does the firm earn when a customer does not take the discount? (Use 365 days a year. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What effective annual interest rate does the firm earn if the terms are changed to 2.4/10, net 30, and the customer does not take the discount? (Use 365...
A firm offers terms of 1/10, net 35. a. What effective annual interest rate does the firm earn when a customer does not take the discount? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What effective annual interest rate does the firm earn if the discount is changed to 2 percent? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places,...