What is the development of the world trading system like and the current trade issue?
Free trade began in England in 1846, but disappeared with the Great Depression. In 1947, GATT was established to liberalize trade → followed by WTO and more organizations that included enforcement mechanisms and other things to control and regulate trade.
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Government Policy and International Trade
- What are the implications for managers of developments in the world trading system? Why should a manager of an international firm care about the political economy of free trade or about the relative merits of arguments for free trade and protectionism?
- What are the arguments against strategic trade policy? What would happen then if we let government intervene to support domestic firms in order to help them gain first-mover advantages?
- Why do governments sometimes intervene in international trade?
- Which policy instruments are used by governments to influence international trade flows?