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Trade Protectionism

Protection is any attempt by the government to give the domestic producer an artificial advantage over a foreign producer. The government can protect its industries in three ways: restricting the quantity of imports (quotas), lowering the price for domestic producers (subsidy) or increasing the price of imports (tariffs). Australia now stands at the crossroads of two paths. Should we continue as we are, reducing tariffs, which since the mid 80’s has seen Australia’s ratio of exports and imports to Gross Domestic Product (GDP) each rise from around 15% to 20%? On the other hand, should we look after what industry we still have and protect the inefficient ones? Australia had been one of the largest advocates for protectionism up until the 70’s when the level of protection began to fall, and by 2000 is projected that the average rate of protection would fall to 5%. This is in line with most other developed countries

 Infant industries will be killed off by the market unless they are given protection and allowed to grow up and produce economies of scale.

 Dumping by overseas firms to flood the market and sell at below production costs may destroy domestic producers if they are unable

. . .
Some common words found in the essay are:
ARGUMENTS PROTECTION, Production Possibility, , Product GDP, Deficit CAD, CAD Australian, domestic producers, short term, Account Deficit, account deficit cad, Current Account, arguments protection , current account, economic modeling, protection fall, inefficient resource, current account deficit, reduction protection, trade liberalization, protection , costs increase,
Approximate Word count = 816
Approximate Pages = 3 (250 words per page double spaced)

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