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Distributional Issues And Protection With Essay

A second loss refers to the reduced ability to sustain cultural experiences, as the number of tourists to and from the United States is restricted by financial criteria. This could easily translate in not only social and individual loses, but also issues related to the country's ability to acquire knowledge on the culture and civilization of other global regions. Additionally, it could also cost the United States as it would limit its inhabitants' abilities to share knowledge with specialists in other countries, include their own expertise, and as such sustain the development of their native country.

A protected airline industry has the third impact of reducing the quality of the products and services offered to the customer. This is generically possible due to the reduced levels of competition, which allow airline operators to rely on the services they offer, rather than striving to improve their offering. This translates into reduced development opportunities for the industry. For instance, we now witness a growing focus on environmental protection, as well as a growing terrorist threat; the airline industry is nevertheless one of the greatest pollutants and one of the primary targets of terrorist attacks. Reduced competition means that airline organizations will not strive to research and integrate fuel efficient aircrafts, nor will they invest more in safety. Such issues have tremendous impacts. For once, pollution leads to global warming, which requires increased sums...

Terrorist attacks also generate financial loses as they destroy buildings and human lives. In the aftermath of the 9/11 attacks, the city of New York witnessed a redistribution of the human resource, as the direct result of its loss of hundreds of financial specialists, real estate agents and so on.
Despite these loses, there are however some standpoints used to justify the protectionism of the airline industry. The most relevant example in this sense is offered by pollution, which is significantly reduced through the protectionist policies. Nevertheless, there are other means by which this matter could be addressed, such as increased taxes based on the level of waste eliminated by the aircraft, the number of flights or massive investments in railroads and their promotion as the most adequate means of national traveling (the Independent, 2007).

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References:

Cleveland, P.A., Jared, R., October 2002, Airline Protectionism Hurts Travelers, the Freeman Ideas on Liberty, http://www.thefreemanonline.org/featured/airline-protectionism-hurts-travelers / last accessed on October 26, 2009

2007, Leading Article: The Absurd Economics of a Protected Industry, the Independent, http://www.independent.co.uk/opinion/leading-articles/leading-article-the-absurd-economics-of-a-protected-industry-441441.html last accessed on October 26, 2009

World Tourism Organization, 1994, Seminar on GATS Implications for Tourism, ISBN 9284401461

World Trade Organization, 1998, Tourism Services, http://www.wto.org/english/news_e/news01_e/w51.doc last accessed on October 26, 2009
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