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The Effective Rate of Protection Is a Weighted Average of Nominal

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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?


Definitions:

Cyanosis

Bluish discoloration of skin and mucous membranes caused by reduced oxygen in blood

Clubbing

A physical condition characterized by bulbous enlargement of the ends of one's fingers or toes, often indicating underlying health issues, such as lung disease.

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Descriptive of a foam or fluid that is light red to pink in color, often indicative of a specific medical condition or bodily reaction.

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A condition in which the level of oxygen in the blood is less than normal; characterized by a low partial pressure of oxygen in arterial blood or low hemoglobin saturation.

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