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Business, 16.10.2019 22:30 gagem1278

2. calculating the effective rate of protection globalcell is an american firm producing cell phones. globalcell imports cell phone components from india and assembles them domestically. suppose that in the united states, a cell phone sells for $300 and that 80% of the cell phone’s value comes from the value of the imported components. the united states imposes a 30% tariff on cell phones and a 10% tariff on the cell phone’s components. assume that costs of producing components are the same in the united states and india and that transit costs are nonexistent. based on the information provided, the effective rate of protection that globalcell receives from the tariff is .

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