Role of government in trade policies
Role of government in trade policies
Economically speaking, governments have no role to play in international trade. If governments abstained from adopting trade policies, the world would have an economic condition called free trade. This would mean there would be no more barriers to an exchange of goods or services across national boundaries than there are within such boundaries (Britannica, 2014).
In today’s global economy, government industrial policies can dramatically change a nation’s comparative advantages. If the determination of international trade is to supply goods and services that we all demands, then I would have to assume that merely the purpose of government is to ensure that nothing interferes with the transaction between international producers and consumers. However, I do not agree with this information. My reasons are simply because some of the products we get from other countries are not safe. My second point of thinking is, companies that trade with them are often be able to hide details about how dangers or harmful their goods are from us; until the Globalization and Trade in Context 6 government forces them to follow regulations.
According to a University of Michigan study, the average U.S. family of four still stands to gain an estimated $7,800 per year if there was total elimination of global barriers to trade in goods and services. The World Bank has reported that the elimination of global trade barriers could lift 300-
500 million of the world’s poor out of poverty over the next 15 years (N,N, 2014). However, I know for a fact that I would like and do appreciate our government for regulating health and safety issues.
Economically speaking, governments have no role to play in international trade. If governments abstained from adopting trade policies, the world would have an economic condition called free trade. This would mean there would be no more barriers to an exchange of goods or services across national boundaries than there are within such boundaries (Britannica, 2014).
In today’s global economy, government industrial policies can dramatically change a nation’s comparative advantages. If the determination of international trade is to supply goods and services that we all demands, then I would have to assume that merely the purpose of government is to ensure that nothing interferes with the transaction between international producers and consumers. However, I do not agree with this information. My reasons are simply because some of the products we get from other countries are not safe. My second point of thinking is, companies that trade with them are often be able to hide details about how dangers or harmful their goods are from us; until the Globalization and Trade in Context 6 government forces them to follow regulations.
According to a University of Michigan study, the average U.S. family of four still stands to gain an estimated $7,800 per year if there was total elimination of global barriers to trade in goods and services. The World Bank has reported that the elimination of global trade barriers could lift 300-
500 million of the world’s poor out of poverty over the next 15 years (N,N, 2014). However, I know for a fact that I would like and do appreciate our government for regulating health and safety issues.