Short term adjustment incurs costs as the affected industries restructure for the more competitive environment. Some firms close, others open. Some workers are displaced, others retrained, others enter new jobs. The costs of adjustment are felt directly by those affected and by the whole community. Government policies and programs need to be sensitive to adjustment pressures on industry and workers, as was the case with the Governments recent decision on the motor vehicles and textile, clothing and footwear sectors.
Families have access to a wider range of affordable and high quality products.
Falls in trade barriers have contributed to a stronger industrial base, higher productivity, better access to international markets and new technologies, and more competitive manufactured and services exports. Factories have closed, but in food processing, a range of elaborately transformed manufactures, education, tourism and other services the news is good. As the world's markets liberalise more and Australia moves towards free trade in the Asia Pacific, these more open markets for our products will be open to others too. Australia will need to have its resources allocated to the most competitive production possible. Instead the public usually sees the factory closures and is made aware of some costs that nearly always accompany change of any type.