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INTRODUCTION The international trade policies that are set by each country, this is done to protect the citizens of their country and the currency from being exploited. International trade takes place since not all countries produce everything at the most efficient rate and cost. This trade allows people to exploit abundance of resources I other places while fulfilling their demands. International trade affects the economies of each country, as there is an inflow and outflow of currency, US dollar being the standardized currency all over the world. Some countries come together and form an Association for their mutual benefits, eg European Union, ASEAN etc. international trade highly influences global events in the world as the rise of one nation can lead to the rise of another and the downfall of a another nation. The exchange of goods and services allow an increase in global connection, global economy, and efficiency. Some country allow free trading of goods, not imposing any tax, and sometimes impose heavy tax on some of the goods. Eg Dubai is tax free, trading within the ASEAN countries is tax free for some goods, import of cars are taxed heavily in Singapore though in the ASEAN territory and also in India.
MAIN TEXT
POLITICAL ARGUMENT FOR INTERVENTION
While trading internationally there is some norm and rules are to be followed as per the country of trade, these are regulated mainly through tax implications and quotas. These taxes are set by the government of a country to reduce or increase trade of a certain good. Though we may argue that there must be no tax implied on any international trade, but that is not possible and thus there are political interventions, which regulate trade. These political arguments for trade interventions are: -
PROTECTING JOBS AND INDUSTRIES
This argument suggests that the domestic people must be protect from the outsides cheaper imports of employers as this hamper the output of the local, causes
MAIN TEXT
POLITICAL ARGUMENT FOR INTERVENTION
While trading internationally there is some norm and rules are to be followed as per the country of trade, these are regulated mainly through tax implications and quotas. These taxes are set by the government of a country to reduce or increase trade of a certain good. Though we may argue that there must be no tax implied on any international trade, but that is not possible and thus there are political interventions, which regulate trade. These political arguments for trade interventions are: -
PROTECTING JOBS AND INDUSTRIES
This argument suggests that the domestic people must be protect from the outsides cheaper imports of employers as this hamper the output of the local, causes