Trade Policy

Trade policy refers to the regulations and strategies that a government establishes to manage its international trade relationships. This includes the rules and practices that govern imports, exports, tariffs, and trade agreements. Trade policy aims to enhance a nation’s economic interests by influencing the flow of goods and services across borders. It can involve protective measures, such as tariffs and quotas, to shield domestic industries from foreign competition, as well as liberalization efforts to promote free trade and open markets. Trade policy also encompasses the negotiation of bilateral and multilateral trade agreements that govern trade relations with other countries. Overall, trade policy plays a crucial role in shaping a country’s economic environment, influencing domestic production, consumption, and overall economic growth.