Role of government in trade policies Essay

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 termination 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.

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