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Why are effective tariffs on a given industrial product or sector almost always larger than the nominal tariffs for the same product or sector? Group
Why are "effective tariffs" on a given industrial product or sector almost always larger than the nominal tariffs for the same product or sector? Group of answer choices Mathematically, they must be larger, by definition. Because effective tariffs must be > 0 and the corresponding nominal tariffs are often zero (for example, under free trade). Because the inputs used in production are often imported and themselves protected by tariffs. Because "effective tariffs" in trade legislation target the final products resulting from the production process, they can be applied more discretely or "effectively." Because effective tariffs are, by definition, "effective," while nominal tariffs may not be
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