Concern of Government Trade Policy Essay

Whose interests should be the paramount concern of political sympathies trade policy the interests of producers (the telephone circuit and the employees) or of the consumers?This is a very interesting question. I would hope that the policies that are in place by the government would help not only the producers nevertheless in the long run would also help the consumers. The government has a responsibility to ensure that businesses will get that competitive advantage in the ball-shaped 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 United States has made many mistakes where we take a leak protected the producers and companies and have developed many policies to ensure American companies do not extend. The book discusses the steel industry and how government placed an Ad Valorem Tariff on steel.It talked roughly how we wanted to protect domestic steel produce rs 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. Can we learn from this mistake in the future? Sure we can. But you need the respectable people for the job. We need to make sure better policy-making decisions are made and that local content requirement is occurring.The book talks 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 lose their jobs if there are much well-organized and competent foreign competitors, I would argue 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 sort of than to protect them from reality. Government in tervention can also lead to trade wars. Government interventionusually ends up not working. The European Common market-gardening 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 strike in and take an unfair advantage, a.k.a. the Steel industry in 2002.