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International Trade (Protection) - Australia
The problem with production is that inefficient industries benefit at the cost of efficient industries. This allocates resources away from efficient sectors of the economy.
*The advantage of removing or reducing protection means that industries need to become efficient in order to become competitive
*If an industry can not survive without protection it should close down- resource can then be allocated for better uses
*In the short term removing protection creates unemployment but over time the efficient industries will absorb the resources
*Reducing trade barriers will result in a net increase in employment
*Protection reduces 'real' income and SOL.
*Australia has reduced its protection wall and is now a leader in World Trade Organization forums in seeking commitment to free trade principals
*By lowering protection, consumers' benefit, input costs are lowered and efficient industries are able to grow.
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