Question
Over recent years, Kamaria has significantly expanded its car manufacturing industry, which has flourished due to Kamaria's very low labour costs and the generous government
Over recent years, Kamaria has significantly expanded its car manufacturing industry, which has flourished due to Kamaria's very low labour costs and the generous government grants and tax exceptions which the Kamarian government provides to exporters.
Kamaria has progressively increased the numbers of cars that it is exporting to overseas markets, including Australia. By contrast, due to increasing production costs, Australia's car market has been struggling. It has been estimated that Kamarian-made cars sell for around half the price of Australian-made cars.
The Australian Car Manufacturing Council, which is the peak body for Australian car manufacturers, is very concerned at Kamaria's practices - which it sees as undermining the "level playing field" in car manufacturing. The Council fears Kamaria's practices could make Australian car manufacturing plants unviable and ultimately lead to the collapse of Australia's car manufacturing industry. After consulting with their members, the Council decides to request the Australian federal government to take urgent action to address the current situation.
The Australian Car Manufacturing Council seeks your advice about the possible measures it could request the Australian federal government to take in this scenario.
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