Do You Agree Or Disagree With Government Intervent

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Introduction International trade is a crucial activity throughout the worlds environment in today’s economic climate, Hill states that International trade occurs when a firm exports goods or services to consumers internationally. International trade creates benefits for the government such as extra revenue and also provides consumers with a wider range of products and services. Governments can intervene in many ways on International trade and it is important in doing so to control the imports and exports of goods efficiently. Free trade can be described as the process of International business not being restrained by government interference or regulation, such as duties. It refers to a situation where a government does not attempt to influence or intervene through quotas or duties what its citizens can buy from another country, or what they can produce and sell to another country. (Hill) When a government intervenes into free trade it does so by using instruments such as subsidies, tariffs, import quotas, voluntary restraints, local content requirements and administrative policies. I will discuss in my essay how these policies affect individual countries and why governments decide it is a good idea to intervene into free international trade. I will also discuss why countries trade and why International trade is important for a country and the economy. I hope that by the end of this study I will have provided enough discussion on the arguments for and against government intervention into International trade. Reasons why countries trade with each other • Wider choice of goods • Competition increased • Productivity increased • Market for excess output • Better international relations • Higher standard of living The benefits of international trade have been the major drivers of growth for the last half of the 20th century. Nations with strong international

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