The Impact Of Foreign Policy On International Trade Essay

Ever since the first involvement of government in international trade, many people have posed their opinion about what the role of government should be in it. Different factors are involved when it comes to deciding what this should be. It impacts a lot of people, so in order to do that, trade policy must be properly defined, identify what the roles of government currently are, and their involvement in it, and then analyse what should be their role. Trade policy is how a country carries out trade with other countries (Commercial Policy, n.d). Even though a lot of people support government intervention in international trade, countries would benefit a lot more if the government removes protectionism and promotes free trade instead. Trade policy is defined as a collection of rules and regulations that are made by public officials which relate to trade (Trade Policy, 2010). An organisation that makes the rules of trading amongst its member nations is the World Trade Organisation (WTO). 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