Essay on The Impact Of Free Trade On The Uk And Europe

1188 Words Apr 27th, 2015 5 Pages
Prior to the early 1980 's, strong barriers to trade limited Australia 's exporting capacity to mainly the UK and Europe regions. Being a member of the Commonwealth provided Australia with a strong foundational connection to the UK, enabling trade predominantly of agricultural products and commodities. Additionally, Australian industries were protected from foreign imports for several economic reasons. However a movement towards free trade facilitated by Australia 's participation in a number of multilateral and bilateral trade agreements meant that while domestic industries were no longer protected, long term benefits of free trade could be achieved. Despite common economic view propounding the effectiveness of free trade, there are several arguments for protectionist policy that might be effective based on a temporary assumption. In particular in Australia, industries such as the car and auto industry that had relatively high costs rendering them uncompetitive on an international scale would temporarily benefit from protection. It is important to note, the Government should only provide protection to industries and companies with a high probability of achieving some comparative advantage in the future.
In Australia, grants have been provided to emerging technological. Another economic reason for the implementation of protectionist policy in Australia was to restrict international companies with production surpluses from disposal of their excess product at comparatively…

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