5. The aircraft industry in Europe receives aid from several governments, aqcording to some estimates equal to

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5. The aircraft industry in Europe receives aid from several governments, aqcording to some estimates equal to 20 percent of the purchase price of each aircraft. For example, an airplane that sells for $50 million may have cost $60 million to produce, with the difference made up by European governments. At the same time, approximately half the purchase price of a "European" aircraft represents the cost of components purchased from other countries (including the United States). If these estimates are correct, what is the effective rate of protection received by European .

aircraft producers?

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International Economics Theory And Policy

ISBN: 9780321116399

6th Edition

Authors: Paul R. Krugman, Maurice Obstfeld, Marc Melitz

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