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(15 points) A country produces automobiles whose international price is 100 thousand dollars. In production process, it requires two types of input, whose international prices

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(15 points) A country produces automobiles whose international price is 100 thousand dollars. In production process, it requires two types of input, whose international prices are 50 and 30 thousand dollars. If the country imposes a tariff of 20 percent for automobiles and 10 percent and 30 percent for their components. Compute the effective rate of protection (ERP) for automobiles. What can you infer from the computed value of ERP? Discuss

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