The Political Economy of International Trade

This Lecture is about Political Economy of International Trade. The international trade to protect the interest of politically important groups or promote the interest of key domestic producers. When government intervene, they often do so by restricting imports of goods and services into their nation. while adopting policies that promote domestic production and exports. Normally their motives are to protect domestic producers and jobs. By developing and exploiting their domestic scarce resources, countries can produce a surplus, and trade this for the resources they need.