Trade policy, Microeconomics

Assignment Help:

TRADE policy:

The well known economist D. H. Robertson has immortalized the role of trade in development with his famous statement that "trade is an engine of growth". The policy makers and economists in India always took seriously trade policies to attain development objectives. In fact, trade policies played a very crucial role in India's planning for industrialization.

The major instruments of trade policy:  tariffs, quotas, and subsidies. By trading environment of a country we mean the nature of existing trading relationships that the country in question maintains with various countries of the world. For example, a country may decide to close it borders so that no exchange of goods and services with other countries is possible. Or else, the country may allow inflow and outflow of goods and services between countries without any restrictions. Alternatively,  a  country may find  it desirable  to  form  trading arrangements with respect to one or a  group of countries where  all restrictions are  removed with respect to  the particular country or the group of countries but yet maintains certain restrictions with  respect to all  other countries. You have learned about such regional trading blocs. These are policy issues that a country may like to consider to attain certain aims and objectives at any given point in time. As you will understand shortly, trade policies play important roles in economic development of a country.

It turns out that with the changes of time and the structure of the economy, the nature of the desirable trade policies also changes. India has used some mixtures of the above trade policy instruments to restrict or expand its trade. India's trade policy has always been very intricately related to its development objectives.  At the dawn of India's independence, the main objective before the country was to achieve rapid economic growth and removal of poverty. Most economists and policy makers then thought that the appropriate strategy of trade policy to achieve such goal should be protectionist and hence the country had followed import-substitution strategy of industrialization (ISI) for rapid economic growth. Over the past five decades there has been a sea change in India's trade policy and what was thought to be appropriate trade

policy strategy  in the early  days of planning  has subsequently  considered being detrimental to growth and development. Thus while fifty years ago  there was a consensus  among economists  and policy makers  that an appropriate  trade policy was  one, which protected  infant  industries in the country, today there is a consensus in favor of an export oriented trade policy.


Related Discussions:- Trade policy

Case study on exceptions to the law of demand., can i get a case study on s...

can i get a case study on share market or any other company about their exceptions to the law of demand?

Criteria of a good forecasting method, Criteria of a Good Forecasting Met...

Criteria of a Good Forecasting Method: 1. Simplicity : and Ease of Comprehension: Management must be able to understand and have confidence in the techniques used compli

Marxism, Hi, Can you help with writing ten pages, each page deferent topics...

Hi, Can you help with writing ten pages, each page deferent topics about Karl Marx economic views. It will be in english as a second language. Nothing fancy. Just simple straight

What do you meant by derivatives, Q. What do you meant by Derivatives? ...

Q. What do you meant by Derivatives? Derivatives: A derivative is a financial asset whose resale value depends on the value of other financial assets at different points in tim

Enzyme activity mechanism, The enzymes are highly specific in nature. Durin...

The enzymes are highly specific in nature. During enzymatic reaction the enzyme is so built that it binds to the substrate in a specific manner. The stepwise mechanism of enzyme ca

Describe the income and cross elasticity of demand, Problem: a. With th...

Problem: a. With the help of diagrams, describe how the price and quantity of potatoes will change under the different circumstances: (i) A severe drought affecting its pro

Economies of scope, Economies of Scope The ability of a organizati...

Economies of Scope The ability of a organization to decrease its unit costs by producing two or more products or services that involve complementary skills, experience and

Determine the profit maximizing price and quantity, Determine the profit ma...

Determine the profit maximizing price and quantity A firm has segmented its market into the following demand functions: P1 = 500 – 50Q     P2 = 500 – 20Q     with a cost fu

Government expenditure equilibrium level of national income, Government Spe...

Government Spending Wagner's Law of economic activities applies to every economy. According to this law, there is both an extensive and intensive increase in government activit

Demand, what is ment by demand

what is ment by demand

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd