If the nominal tariff on finished computers is 12% and the weighted average nominal tariff on the inputs for making computers is 18%, what can be said about the effective rate of protection for the computer sector?

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It will be lower than 12% and might even be negative.It will be under 12% but definitely above zero.It will be exactly 6%.It will be greater than 30%.Cannot be determined from the information given.

Explanation

Since the nominal tariff on inputs (18%) is higher than the tariff on the final product (12%), the effective rate of protection for the computer industry is less than the nominal tariff on the finished goods and can actually be negative, reflecting a disadvantage rather than protection.