The paper “ Political, Economic and Cultural Motives behind Government Intervention in Trade” is a thoughtful example of a business assignment. Globalization has led to an increased trading activity between borders. International trade is marked by reduced trade barriers. In the last century, there was an increased development of trading blocks and unions in the world. Generally, all the blocks and unions aimed at increasing international trade by reducing trade barriers (World Trade Organization, 2013, p. 1). After the Second World War, globalization started to take effect on an increased scale, with the formation of the United Nations being the initial move by world leaders to unite the divided world.
In the modern world, there are even regions that use a common currency in trade for instance the Eurozone, with an aim of reducing the exchange barriers in trade. Even though the world, since World War II, has witnessed great reductions in trade barriers, governments everywhere continue to restrict free trade. Government regulation of trade is normally based on political, economic, and cultural objectives (Schepers, 2010, p. 465). governments may regulate trade with an aim of either promoting or restricting it.
Governments promote trade by the use of subsidies, export financing, establishing foreign zones, and using special government bodies to promote trade. Ways in which governments restrict trade include using tariffs, quotas, controlling the currency, delays in administration, embargoes, and the enforcement of local content requirements. The following paper will discuss the political, economic, and cultural motives behind government intervention in trade. Political MotivesPolitical motives form the major causes of government intervention in trade. On this point, it is important to acknowledge that politics play a very important role in trade.
Owing to the great influence which trade has on the lives of people, governments normally try to regulate it, with an aim of ensuring that the general welfare of the population is taken care of.
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