Trade policies determine the size of markets for firms' output and strongly influence both foreign and domestic investment. Over time, the influence of trade policies on the investment climate is growing (OECD, 2021).
1.With appropriate example/s and diagram/s, illustrate which trade policy/s the local government can impose to protect domestic industry.
2.If the government has decided to impose a tax of a certain amount on every unit of product sold, what is the tax burden on consumers?