Protection Question (1 Viewer)

[rsingh]

Hey guys,

I just started yr 12 and our teacher gave us this question:

"Discuss the main macroeconomic and microeconomic effects of protection on a national ecnonomy like Australia. How can protection impact on global economic activity?"

It's not suppose to be an essay, however we need to go into some detail.

I'm not too sure how to tackle the question. Any suggestions of what structure I should use and what I should 'dicuss'.

 

[miffytoki]

"Discuss the main macroeconomic and microeconomic effects of protection on a national ecnonomy like Australia. How can protection impact on global economic activity?"

that first bit of the question is weird...when i think micro and maco policies i don't usually associate it to protection....

microeconomic policies tho increase export diversivication (think the recent increases in service and manufacturing production..ie structural change) and help improve export competitiveness ...this can lead to reductions in protection (infant industry argument) as newly established industries establish themselves and become more efficient...however a disadvantage here is that industries may conduct "rent seeking behaviour" and lobby for protection to stay resulting in continued misallocation of resources.

as for the latter part of that question u can talk about the retaliation effect of protection on global economic activity, how countries are increasing barriers for free trade by entering into bilateral trade agreements, following the failure of the WTO to reach agreements and progress for Agr. goods. (i think Cairns not sure..) ...u can argue this point by stating that it can also be seen as a starting point for the expansion of free trade....

sorry if i don't make sense i'm sooo tired! hope i helped...weird q tho...or maybe i'm tired..

 

[Rorix]

Hey guys,

I just started yr 12 and our teacher gave us this question:

"Discuss the main macroeconomic and microeconomic effects of protection on a national ecnonomy like Australia. How can protection impact on global economic activity?"

It's not suppose to be an essay, however we need to go into some detail.

I'm not too sure how to tackle the question. Any suggestions of what structure I should use and what I should 'dicuss'.

people who see macro and micro and automatically think policies

the question basically wants to you to discuss the arguments for and against protection.

 

[santaslayer]

its actually all in the textbook...arguments like unemployment, competitiveness, pricing...etc

 

[:: dreami ::]

Hey guys,

I just started yr 12 and our teacher gave us this question:

"Discuss the main macroeconomic and microeconomic effects of protection on a national ecnonomy like Australia. How can protection impact on global economic activity?"

It's not suppose to be an essay, however we need to go into some detail.

I'm not too sure how to tackle the question. Any suggestions of what structure I should use and what I should 'dicuss'.

macro effects -- effects of protection on the general economy eg: increase exports, international competitiveness...

micro effects -- effects of protection on the micro sector eg: unemployment, structure of workforce etc...

protection impact on global activity -- talk about trade agreements, comparative advantage etc...

hth

 

[disco_dave]

thought i add my bit:

marco = demand side of the economy (fiscal and montery policy control this)

mirco = supply side of the economy (more specfic on various industries and aims at improving competitness)

and protection reduces world trade... bad bad bad for globalisation!

 

[Wild Dan Hibiki]

a bit off-topic-ish but wat kinda stats would u put into a micro essay?

 

[aditya]

like he said macro = cyclical effects