Concern of Government Trade Policy Essay

Whose interests should be the paramount concern of government tack policy the interests of producers (the business and the employees) or of the consumers?This is a very interesting question. I would hope that the policies that are in dumbfound by the government would do not only the producers but in the long run would overly help the consumers. The government has a responsibility to ensure that businesses will establish that competitive advantage in the global business world. That said, if governments place were to place too much of its interest in businesses, the consumers would definitely suffer immensely. Historically, the coupled States has made many another(prenominal) mistakes where we have protected the producers and companies and have developed many policies to ensure Ameri digest companies do not cash in ones chips. The book discusses the steel industry and how government placed an Ad Valorem Tariff on steel.It talked about how we cherished to protect domestic ste el producers and how government had too many policies in place. That eventually was counterproductive and it raised the cost of production. This then caused the output to fail miserably and before we know it, we eliminated that tariff within two years. stool we learn from this mistake in the future? Sure we can. But you posit the right hatful for the job. We need to make sure better political decisions are made and that local content requirement is occurring.The book negotiation about government intervention. When it does, it seems to me, that it is talking about protecting the inefficient companies, peoples jobs, and industries from unfair foreign competition. While employees may well lapse their jobs if there are more well-organized and competent foreign competitors, I would represent that this is the nature of competition, and that the role of government should be to help these employees get jobs where they can be efficiently employed rather than to protect them from reali ty. Government intervention can also lead to trade wars. Government intervention ordinarily ends up not working. The European Common Agriculture Policy by European farmers backfired and has cost consumers greatly. One the other side of the spectrum, if government does not set policies to protect the interests of businesses then global firms, companies, may come in and take an unfair advantage, a.k.a. the Steel industry in 2002.