06.+Methods+of+Protection


 * //__Methods of Protection:__//**

**WHY?** In order to __protect industries from being taken over by foreign competitors__ // - //**// Quantity Demand of imported goods: //** Tariffs affect quantity demand of foreign goods as tariffs cause the price of the imported good to increase, making it less desirable to consumers, therefore decreasing demand - **//Encourages Competition://** The country importing the goods puts a tariff on the goods to create a price increase, this makes it achieveable and realistic for domestic producers to compete with foreign competitors **// ​ - Domestic Businesses: //** Protects domestice businesses from being over taken and become bankrupt as a result of cheaper products from foreign competiton (Foreign competitors are able to produce products at a lower price generally because of the unethical low cost or slave labor, reducing the expense of production, creating low price for the product) //** - Government: **// Government receive revenue from tariffs, the revenue collected is injected back into the economy to account for the money lost (leakage) through the selling of foreign goods
 * **TARIFF** (Rebecca)
 * TARIFF: ** government imposed tax on imported goods.

An import quota controls/limits the amount of a good that is allowed to be imported over a given period of time. Simply it is the restriction on the amount of goods that may be imported.
 * Quotas (Daniel M)**

Subsidies can be regarded to as a form of protectionism or a trade barrier by making domestic G+S artificially competitive against imports. measures of protectionism can include hidden subsidies, consumers are forced to pay extra for a good outside their country, and consequently they industry receives a form of a subsidy. such measures include import quotas, import tariffs and import bans.
 * Subsidies (Timothy)**

This is the voluntary restriction of exports to another country in exchange for a simiilar responce from the other country involved i.e. the Chinese government set their export tariffs at 2-10% hoping to pre-empt other countries to lower their tarrifs on China's exports, particularly in the textile market.
 * Voluntary Export Restraints (Mary)**

Local content goods dictate that goods contain a minimum percentage of locally made parts and as compensation, all imported parts are freed from tariffs. The aims of these rules are to 'foster Australian content, premote Australian culture AND protect domestic jobs.'
 * Local content rules: (Sarah)**

Export incentive programs give domestic producers assiatnce such as grants, loans or technical advice, and encourage buisnesses to penetrate global markets or to expand their market share. **
 * Export Incentives (David)