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There have been arguments between economists, policy makers and business community against free trade. Economists and policy makers support free trade stating that it propels economic development. Business community support government interventions stating that it is the role of government to support domestic industries.
a) Discuss the four most significant policies advanced by the business community why government should support domestic industries.
b) Governments protect domestic firms from foreign competitors by erecting barriers to trade. This is done through imposing tariffs and non tariff barriers.
Discuss five of the non quantitative trade barriers a government can impose.
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