Rate of Effective Protection(redirected from Rates of Effective Protection)
Rate of Effective Protection
The added value to a domestically produced good or service resulting from a tariff that keeps out (or makes more expensive) foreign goods and services. That is, because the tariff make foreign goods and services more expensive than they otherwise would be, domestic goods and services are not forced to cut their own prices, which adds value and results in higher profits.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved