Tensions between protectionism and free trade:
Polititians agree with economists that globalisation and free trade is beneficial for the domestic economy because it promotes specialisation and long-term unemployment. However during the process of structural change (the changing structure of industries) jobs are lost in some industries because of their inefficiencies when exposed to international competition.
Int. orgs and treaties:
Look in your textbook for more detail. The role of the WTO in regulating and maintaining global trade environment and agreements.
Trade agreements:
Bilateral, multilateral. Australia has free trade agreements with many countries such as USA, Thailand, NZ and Singapore. Businesses ay want to consider trading with these countries instead of those with high levels of protection. There are both positive and negative effects of of trade agreements and free trade.
Regionalism:
The EU is the biggest regional trade union. It is beneficial for member countries although has been critised for its exclusion of the rest of the world. Although it promotes free trade the very fact that the union exludes countries is essentially protectionist. Aussie businesses who trade with European countries may be put at a disadvantage compared to businesses within the union.
War and Civil Unrest:
Basically countries don't want to set up in countries like Iraq. Fairly self explanatory.
