The effective rate of protection is a weighted average of nominal tariffs and ta

Question

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?
Please more details, thank u!!
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?
Please more details, thank u!!

Please more details, thank u!!

Explanation / Answer

cascading tariff structure -As the product is processed the tariff rates increases it is the disadvantage for the primary sector like agriculture.primary sector also distress by dipressed producer prices because of monopolies on export marketing ;where as it encourages Import substituion in manufacturing sector because of Import restricition and subsidies in industrial countriesThe group tbat is harmed by all these are exporter of raw material and component in developing countries

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