Q28

Criteria	Marks
Demonstrates a clear and comprehensive understanding of the effects of different methods of protection on firms and governments in Australia, supported by examples<br>• Provides a sustained, logical and cohesive response that integrates relevant economic terms, concepts, relationships and theories<br>• Provides a well-informed analysis of different methods of protection on firms and government in Australia	17–20
Demonstrates a sound understanding of the effects of different methods of protection on firms and governments in Australia<br>• Provides a logical and cohesive response that applies relevant economic terms, concepts, relationships and theories<br>• Provides some analysis of different methods of protection on firms and government in Australia	13–16
Demonstrates some understanding of the effects of different methods of protection on firms and/or governments in Australia<br>• Provides a coherent response that uses relevant economic terms, concepts and relationships<br>• Provides a description of the different methods of protection	9–12
Demonstrates some understanding of protectionist methods<br>• Presents a generalised response that uses some economic terms and/or concepts	5–8
Provides some relevant information<br>• Provides a limited response that uses some economic terms	1–4

Answers could include:

• Clear definitions of protectionist methods, such as tariffs, subsidies, quotas, local content rules and export incentives.
• Effects of protectionist methods on Australian firms: increased domestic market share, protection of domestic employment, encouragement of local investment, capacity to compete internationally, higher production costs due to tariffs, reduced efficiency from lack of competition and potential retaliation affecting export markets.
• Effects on the Australian government: increased tariff revenue, reduced unemployment in protected industries, protection of strategic sectors, fiscal pressures from subsidies and potential trade disputes or sanctions from international bodies.
• Limitations of protectionist policies
• Examples of Australia’s protectionist policies
• Examples of global protectionist policies.