Protection Essay - International Protectionist measures paragraph Flashcards
Discuss the impact of international protectionist policies on the Australian economy - thesis
Global protectionist policies negatively impact Australian export competing industries through decreasing the international competitiveness of Australian exporters
How is the agricultural industry affected by trading blocs
Australia has a comparative advantage in the agricultural industry, however the EU’s common agricultural policy, which absorbs 34% of the EU budget and supplies 1/5th of European farmer’s incomes, drive down global prices for agriculture products.
As Australian agricultural exporters are price takers, selling their products at world prices, Australian producers receive lower prices for their exports and deceased export revenues as a result.
How is the financial services industry affected by protection
Although there are no tariffs in place in the financial services sector, the access of Australian firms to foreign markets is limited by granting licenses in foreign banking industries.
The productivity commission estimates that the elimination of restrictions in the services sector would increase Australian exports by $11 billion annually by 2025.
How will COVID 19 affect the agricultural industry into the future?
Australia’s support for the inquiry into the origins of the Coronavirus lead to retaliation from Chinese through the implementation of an 80% tariff on Australian barley exports, which will likely create unemployment in the agricultural sector into the future.
