industries can offset protection to input-using industries. For example, protection to the textiles industry has a negative impact on incentives to produce garments. Depending on the magnitudes involved, even though the nominal rate of protection to the garments industry is positive, the effective rate may be positive, zero, or negative. What is APR? APR, or Annual Percentage Rate, is the most straightforward way to compare different loans, credit cards and mortgages. APR is the amount of interest repaid in a year and can be expressed, like other interest rates, as either a nominal or effective rate. APR also takes into account for any fees or additional costs associated with the loan. 2. Nominal Protection The nominal rate of protection (NRP) on any good is the proportional difference between its domestic and international price arising from the trade policies in question. These policies can include import tariffs, export taxes, quantitative restrictions (licensing requirements,