-Summarise the key points of Article

-Examine who wins and who loses from international tradeand explain economic concepts and theory relevant to "who wins and who loses from international trade"

-Write diagrams and explain it.

ppendlx 1 - The Article (Extract only) China has 5 appe an 80 per cen on all barley grain imported from Australia. One thing is clear: Austral' as nally been engulfed by the global trade wars stirred up by US President Donald Trump, and Australian farmers are rmly in the ring line. China is the world's biggest drinker of beer, a key ingredient of which is barley. And how do tariffs work? What's a tariff? Essentially a tax imposed by a government on goods or services imported from other countries. They are there to protect domestic suppliers and jobs from competition. Tariffs were cut back dramatically during the reform era of the 19705 and 1980s. Economists don't like tariffs because they artificially allow less productive firms to survive, when those resources of people and capital would be better deployed doing other more productive things, which would produce higher investment returns and wages. Tariffs also mean consumers pay higher prices on imported goods because the businesses that import the goods have to fork out for the tariff and tend to pass on the cost to consumers. Another effect of tariffs is that consumers end up with less diversity in the products available to them because foreign producers don't bother trying to market their goods in a country if they know their goods won't be priced competitively. Instead, consumers tend to get whatever domestic producers make. Much effort has been expended internationally through multilateral and, more recently, bilateral free-trade agreements to try to get rid of such taxes on trade. China is Australia's biggest trading partner. We sent 563 billion worth of iron ore to China in 2018- 19, $17 billion of natural gas and $14 billion of coal. What happens after the ta riff is imposed? China's decision is effective immediately. Some grain already on ships may be exempt. But it is unlikely Chinese importers will choose to buy much more Australian barley now that the price has effectively doubled. They will import from other countries. Australia's barley exporters will try to sell their grain to other countries, mostly other south-east Asian nations, but they are likely to be forced to accept a lower price, given they suddenly have fewer potential buyers. Ultimately, farmers who survive will be forced to sow other crops to sustain a living. It's true that Australia imposes its own "countervailing duties" on a wide range of imports, from Thai pineapples to Italian tinned tomatoes, in a bid to support our homegrown versions. Industries seeking protection from import competition apply to the Anti-Dum ping Commission, which decides what level of duty to impose. Kirchner says there has been bipartisan support from both sides of politics in recent years for ramping up such "anti-dumping" duties. One thing is clear: the global trade wars that erupted with Trump's presidency and engulfed the world last year have finally arrived on Australia's doorstep. At a time of heightened economic uncertainty, policy makers will need to tread carefully