Write a concise report (1000 words) on why arguments for government assistance to the Australian motor
vehicle manufacturing industry were dubious. Government assistance includes both border protection, such as
tariffs, and measures such as subsidies and government procurement programs. Make sure you write your
report as an economist. Please carefully cite the references that you use.
Your main source should be Chapter 3 of the 2014 Productivity Commission report on Australia’s Automotive
Manufacturing Industry https://www.pc.gov.au/inquiries/completed/automotive/report/automotive.pdf.
Sample Solution