Protectionist policies

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This occurred in Australia during the early 1980s with still relatively high tariffs. For example economically efficient Australian farmers were forced to buy imported capital at increased prices that led to their own prices on food stuffs to increase...
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This again leads to an overall decrease in the standard of living. Protectionist policies also protect domestic economies from foreign investment which can be highly beneficial. Foreign Direct Investment can lead to increases of levels of production, increased employment opportunities and increase technological gains for the domestic economy...
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