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Derive the effective rate of protection or erp

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Reference no: EM131441901

Assume the following: the world price of shoes is $100 per pair. The value of imported leather is 70% of the value of the shoes (or $70). The tariff on shoes is 20% while the tariff on leather is 15%. Calculate the Values Added and use them to derive the Effective Rate of Protection or ERP.

Reference no: EM131441901

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