The Role Of Government And Foreign Trade Policies Essay

1588 WordsApr 3, 20167 Pages
The role that Government should play in trade policy has been long debated over the years and is constantly changing to keep up with the needs and wants of a country. International trade policies are vital to any countries prosperity, and more specifically the economic development. Trade Policy is a set of rules and guidelines that determine how a country acts towards another in regards to trade and global business whether it be through free-trade or protectionism. The Governments role in trade policies include regulation, allocation, distribution and stabilization although not only limited to just trade (Harding, 2016). Regarding the role of government specific to trade policy, government should be involved to a certain extent with the major decisions not just being made by one body or group. Through the idea of free trade with specific sectors in the industry adopting protectionism traits to safeguard their local goods and services will ultimately bring a country more economic growth and stability. Overseas trade is very important to a countries economic well being. (Wilson, 2015). Trade policies are ultimately in place to allow countries to expand their local market through free trade or protect their local goods though protectionism. Protectionism is widely used throughout the world such as countries apart of the European Union (Barone & Bendini, 2015). Protectionism helps limit imports and support exports, protecting local goods such as agriculture in New Zealand due

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