# If estimates are correct, what is the effective rate of protection received by European aircraft producers?

The aircraft industry in Europe receives aid from several governments, according to some estimates equal to 20% of the purchase price of each aircraft. For example, an airplane that sells for \$50 million may have cost \$60 million to produce, with the difference made up by European governments. At the same time, of components purchased from other countries(including the United States). If these estimates are correct, what is the effective rate of protection received by European aircraft producers?

Since you have inadvertantly missed typing a figure in the last but one sentence: At the same time, ? of components purchased from other countries(including the United States). , it is not possible to come to a conclusion. Let us say you meant x %, then the effective rate of protection would be (60- x 5 of 50)/ (50 - x % of 50 ), assuming that the imported components are at world prices.

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