Essays on Motives for Government Trade Interventions and its Positive and Negative Impacts Coursework

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The paper "Motives for Government Trade Interventions and its Positive and Negative Impacts" is a great example of macro and microeconomics coursework.   Trade is defined as the activities that involve the exchange of goods and services, with the aim of making a profit. International trade occurs when nations globally take their trading activities to an international level where they can exchange goods and services with different nation globally. International trade is applicable only when two or more nations have an absolute advantage in their commercial activities (Grossman, 2009. pg 80).

One country may be good at resource endowments for producing a certain product that another country cannot or do not have enough resources for production. This will trigger a trade between the two countries where country A will import from country B and vice versa, depending on the specialization of products. The adoption of international trade by many countries has led to some interventions that are aimed at making international trade a smooth commercial activity. These interventions have a positive and negative impact and, therefore, the discussion will identify the motives of these interventions and also the impacts. Trade interventions Trade interventions are policies and measures that are intended to allow smooth flow of trading activities (Cline, 55).

These interventions could be in the form of tariffs, customs and quotas, they help regulate the flow of trading activities and thus there will be peace and harmony during trading. Countries globally impose trade interventions because they have their own motives. Since international trade involves importing and exporting from one country to the next, these interventions are always meant to protect the interests of each country that imposes them.

Therefore, the trade interventions are agreements between the trading nations on trading activities. These interventions come in the form of trade unions and free trade area which contribute to trade regulation. International trading is an activity that involves interaction with nations who have different interests, trade interventions will prevent disagreements during commercial activities which could lead to enmity and thus trade wars. How government intervenes in trade Government trade intervention is mainly through imposing tariffs on imports. A tariff is a form of tax that the government will impose on the imports and exports, as well.

This restriction is aimed at regulating the flow of goods from one country to another. Export tariff, for example, is a tax levied on a country that exports their products and import tariff is a tax levied on a country that imports their products. The government may also intervene through banning the trade of certain products (Beard, 39). Motives of trade interventions When we focus on the motives of trade interventions, we look at the reasons as to why countries that involve in trade form interventions.

We focus on the main reasons as to how these interventions help these countries to flourish in their trading activities. Countries may have different reasons, but a few motives have been identified by studying these nations. Why we focus on international trading countries like the United States would impose trade sanctions and also other renowned countries like Australia, Japan and African countries. These motives are found to be the main reasons for interventions in almost any trading nation. These motives are mainly on protection of economic, cultural and political interests of the countries.


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