Analyse The Impact Of Reduced Levels Of Protection On The Global Economy

682 words - 3 pages

Protection can be defined as government policies such as tariffs, subsidies and quotas, which give domestic producers an artificial advantage over foreign competition, in order to protect them from international competition. Although protection has many benefits at a global level, reduced levels of protection have various effects on the global economy. Countries may choose to reduce protection in order to increase efficiency and productivity levels, and on a global scale, this leads to international competition. This affects the global economy in both a positive and negative way. On one side, this increases productivity but on the other hand, infant industries will find it difficult to ...view middle of the document...

This is due to each country engaging in specialisation, as different countries have different resources and have varying factor endowments that allow them to be efficient in the production of a particular good, however, this will also result in increased short-term unemployment. Countries are able to maximise the use of their resources, and thus as a result of the increased links between countries, this affects the global economy, as the changes in one economy affects other economies. Countries then engage in trade in order to obtain goods that either they aren’t able to produce or are produced more efficiently by another country. Consequently by focusing on a specific type or range of good, domestic producers improve efficiency and the global economy in turn benefits from this.

Dumping will occur as a result of reduced levels of protection, and occurs when a foreign company charges a price in a domestic market that is lower than the price in the domestic market. Without protection, countries are free to engage in this activity and this can have negative effects on a domestic economy, and thus the global economy may suffer due to this, as domestic...

Other Essays Like Analyse the Impact of Reduced Levels of Protection on the Global Economy

Impact of Increasing Minimum Wage on the Economy

1271 words - 6 pages Impact of increasing minimum wage on the economy Earlier in 2014, Deval Patrick, the governor of Massachusetts signed a legislation which stated that the minimum wage in Massachusetts would increase from the current $8 per hour to $11 per hour over the next 3 years. To many people, an increase in the minimum wage may sound beneficial as many positive connotations such as reducing poverty are commonly associated with an increased minimum wage

The Impact Of The Global Financial Crisis On Economic Growth

3967 words - 16 pages of GDP on record for the last 40 years) and will remain a deficit until 2015-16. Further, the Government employed deliberate Government policy decisions subsequent to the crisis, adding to a major expansionary impact on the Australian economy. Early and decisive spending initiatives have been put in place against the face of the global recession, ensuring the economy is secured to make the most of the global recovery. Some of the key initiatives

The Impact Of War With Iraq On The US Economy, Based On An Article From BusinessWeek

1513 words - 7 pages to Iraq, which U.S. President George W. Bush says is threatening the world with weapons of mass destruction.Aldonas told a news conference that war was not inevitable and the impact on the world economy would depend on how long the conflict lasted, if it happened."The combined effect may actually be positive economically because it would eliminate one of the real sources of terror and one of the real clouds hanging over the world's economy," he

The Global Impact Of The Digital Divide

1821 words - 8 pages The Global Impact of the Digital Divide History and Background According to Fabian Koss, the “Digital Divide” as it has come to be known, is the gap between individuals, households, businesses, and geographic areas at different socio-economic levels and their opportunities to access information and communication technologies. This divide is most prolific in developing countries, along with rural areas, reservations, and areas of high

The Impact of the World Trade Center Attacks on New York City's Economy

804 words - 4 pages The Impact of the World Trade Center Attacks on New York City's Economy A study by the New York City Partnership and the Chamber of Commerce estimates that New York City's economy will sustain a gross loss of about $83 billion and lose 57,000 jobs over three years as a result of the World Trade Center attacks. The study, which was released Nov. 15, said even after payment of insurance claims and federal reimbursement for rescue

The Impact of the Global Economic Crisis on the World Economic Order

772 words - 4 pages The Impact of the Global Economic Crisis on the Arab World The Arab countries had experienced rapid changes in their economic fortunes in the year 2008. During the first half of 2008, oil, natural gas, and other commodity prices continued to rise rapidly, leading to huge gains. At the same time, they had to cope with rapidly rising food and raw material prices that threatened their economies and social stability. By July, the effects of the

Levels of Lord of the Flies

1169 words - 5 pages book seems simple with an easy message, there are actually many different important levels to the text. Through various intricacies in the novel, Golding allows the reader to see the psychological, sociological, and allegorical effects that fear and the need for power have on mankind when society is destroyed. In the novel Golding shows the reader the impact that psychological influences such as fear have on the development and evolution of

The Main Features of the Global Economy and Examine the Extent of Interdependence Between Economies Has Affected the Australian Economy

893 words - 4 pages , investment and labour. These main features of the global economy affect Australia through primarily structural change and the resource boom. Globalisation was characterised by high levels of integration. This era began in the 1980’s with the introduction of transport, such as shipping and containerisation and the development in communication, predominately the internet. These developments facilitated the emergence of the global economy. And due to

Three Levels of Leadership in the Military

649 words - 3 pages of the commander’s intent, assigned missions, task organization, and available resources. Direct leaders focus on short-range planning and mission accomplishment, from 3 months to 1 year or more. b. Organizational level leadership exists in more complex organizations and includes leaders at brigade through corps levels, directorate through installation levels (TDA organizations), and assistant through undersecretary of the Army level. In

Essay on Liberalization and Its Impact on the Indian Economy

4626 words - 19 pages to be considered is the large number of people in the country living on the poverty line. To make any reform process socially acceptable a poverty alleviation programme must be in. In the context of resource constraints, a serious thinking has to be done as to the extent and pace of economic reforms. Conclusion: India has to go through a painful period of adjustment before the liberalization can have its fruitful impact upon the economy. In

The Impact Of The Environment On Health

834 words - 4 pages . The acknowledgement of the health and environment affects the air pollutants. The pollution has both chronic and acute effects on our health, and affects many of our systems and organs. The health consequences of lower levels of pollution have been more difficult to decide. The first cause is that people differ in response to the environment and the toxics. When we are exposed to the different conditions caused by the environment, the

Related Papers

Analyse The Impact Of Changes In The Global Economy On Australia’s Balance Of Payments. Hsc

805 words - 4 pages reasons of this balance position. The greatest ramification on Australia’s Balance of Payments recently has been changes in Australia’s terms of trade. Terms of Trade (which shows the relationship between the prices Australia receives for its exports and prices it pays for its imports), in the last decade has increased dramatically. This is considered much to the impact of the global commodities boom. Rise of China and other low-cost emerging

The Impact Of Air Cargo On The Global Economy

1938 words - 8 pages The Impact of Air Cargo on the Global Economy Overview of the air cargo industry The global air cargo industry represents almost 100 billion revenue ton-miles of transportation, an estimated $52 billion in direct revenue in 2005 and substantially more revenues in related trucking and logistics services. In this paper, we combine data from many sources with new analysis of systematic data to characterize the nature of the air cargo industry

Analyse The Impact Of Globalisation On An Economy Other Than Australia

1263 words - 6 pages to many.Economists have said that China's success lies mostly in its exports, but because China is so large, economist are also saying that it cannot rely solely on trade for its economic growth. It has a large saving rate of 39%, however it is yet to knock down the barrier to Western companies, that is connected to his communism. Another important aspect of business between China and the global economy is its traditional nature. It tends to do

Analyse The Effects Of Fluctuations On The Aud For The Australian Economy

995 words - 4 pages Analyse the effects of fluctuations of the AUD on Australia’s economy. A fluctuation in the exchange rate has profound effects on the Australian economy. Any slight movement, either up (appreciation) or down (depreciation), can have drastic, domino like effects. These effects will firstly be felt with importers and exporters, but slowly seep through the economy to influence the way in which the average person lives their life. In recent