Nominal and the effective tariff

 

What’s the difference between the nominal tariff and the effective tariff? Assume 25% Tariff has been imposed on the imported Chinese TV. The U.S. TV is $150 and the Chinese TV is $100 before tariff. The cost of non-labor inputs for both U.S TV and Chinese TV is $80. What is the Effective Tariff Protection?

 

This question has been answered.

Get Answer