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Consider the model of industry protection of Grossman and Helpman. There are two industries A and B, each producing good X and Y respectively. All other things being equal, the demand for good X is inelastic while the demand for good Y is elastic (or more simply, the demand for good Y is more elastic than the demand for good X). The country where these two industries are located is considering to open up its border to foreign companies that will bring competition and reduce the domestic prices of goods X and Y. In this context, and using the G-H model, explain which industry will seek protection against international competition and why. Do not write more than two paragraphs.
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The report which you should submit to me should include: A brief analysis of the control systems required for the health and safety of operatives and others who may be affect
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