The Transformation of World Trade - Essay Example

Governments of different countries have adequate reasons to intervene in international trade. According to Agarwal, the governments would be providing a rationale for both economic and non-economic sectors (Agarwal, pp. 1-3). In the economic sector, the government will be helping to solve unemployment. The government will create domestic jobs by limiting imports. Additionally, the government will be shielding emerging industries from international competitors. In the non-economic sector, the governments will be maintaining essential industries.

Concerning the guardian, the governments will be in a position to pass international restrictions that protect domestic industries (The Guardian, pp. 1-3). Furthermore, the governments will be promoting national security. It will be a means of implementing a foreign policy targeting enemy states. According to Reimer, by intervening in trade, the governments are trying to adhere to the strategic trade policy (Reimer, pp. 1-50). By encouraging domestic employment, governments may raise their tariffs to influence trade.

Additionally, they may use strategic policies to mitigate the influences of big corporations. It will be assisting growing companies domestically. Governments may raise taxes on goods that trade with enemy countries to implement their foreign policies (Reimer, pp. 1-50). Trading in the past mostly dwelt in trade politics. Nowadays international trade has advanced and trade laws have replaced trade politics. Additionally, trade has transformed gradually till nowadays countries trade with a body called World Trade Organization supervising the activities.