Free Trade and Globalisation

Book excerpt: Globalisation and trade liberalisation has significantly altered Australia’s trading environment over the past thirty or so years. Historically, Australia used forms of protection such as tariffs and subsidies to raise the price of imports and keep domestic industries competitive, thereby adding to the cost of living as everyone paid extra to support these industries. However, since the 1980s Australia and many of the world’s economies have implemented substantial reductions in trade barriers. This book provides an overview of Australia’s trade performance and free trade agreements. What are the effects of increased trade liberalisation on Australia and developing countries? A range of opinions is also presented regarding Australia’s free trade practices. Do the benefits of globalisation outweigh its negative impacts? What are the advantages and disadvantages of free trade versus protectionism? Is free trade actually fair?