Trade_Barriers

Trade Barriers Although reduction in trade barriers can help bring benefits, it may cause conflicts with the domestic producers of the society. These conflicts are presented in arguments. Firstly is the Infant-Industry argument. New industries that enter the market often argue for temporary trade restrictions, so they are able to survive long enough to be competitive. This protects them from more established firms, putting them at the edge of being defeated. However, after that period of protection, they are matured to compete internationally. On the other hand, older industries argue for temporary trade restrictions to keep up and adapt to new trade rules and environments. Conflicts such as these are difficult to maintain in practice. Governments are forced to pick out profitable industries, which do not exceed costs of protection if they wish to apply the restrictions successfully. Costs of protections result in more deadweight losses, and are to be avoided, especially with politically tied industries, which are in turn, much more difficult to be removed trade, industries, restrictions, gold, temporary, protection, producers, nations, losses, conflicts, compete, australian, unfair-competition, unfair, tax, subsidized, rules, reduction, price, off, new, malaysia, internationally, industry, however, government, exceed, domestic, difficult, costs, benefits, barriers, australia, argument, argue