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What would be the effective rate of protection on bicycles in South Africa if South Africa places a 75 percent tariff on bicycles, which have
What would be the effective rate of protection on bicycles in South Africa if South Africa places a 75 percent tariff on bicycles, which have a world price of R1000, and no tariff on bicycle components, which have a world price of R500? Does the effective rate of protection on bicycles equal to the tariff rate of 75%? Briefly explain your answer.
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