The Effective Rate of Protection Is a Weighted Average of Nominal

question 33

Essay

The effective rate of protection is a weighted average of nominal tariffs and tariffs on imported inputs. It has been noted that in most industrialized countries, the nominal tariffs on raw materials or intermediate components or products are lower than on final-stage products meant for final markets. Why would countries design their tariff structures in this manner?
Who tends to be helped, and who is harmed by this cascading tariff structure?

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Definitions:

Cultures

The collective patterns of values, beliefs, behaviors, and artifacts that characterize a group of people or an organization.

LMX Theory

Leadership Member Exchange Theory, which suggests that leaders develop unique one-to-one relationships with each of the people reporting to them, affecting outcomes like job satisfaction and performance.

Exchange Relationship

Interaction between two parties involving the provision of goods, services, or sentiments in return for something of value.

LMX

Leadership-Member Exchange, a theory focusing on the dyadic relationships between leaders and followers, influencing many outcomes in the organizational context.