Question

By choosing a specific industry in the US, discuss the role of a strategic trade policy in promoting economic growth and supporting domestic companies in competing more efficient internationally.

Answer 1

Strategic trade policy refers to governmental assistance given to support significant industries that are considered important to future domestic economic development and provide widespread gains to society. These are designed for discouraging the imports, and preventing the foreign take-over of native firms and markets for defending few protectionist steps for few industries. It generally involves subsidies and other support for high-technology companies in concentrated industries

The main two areas of strategic trade policy in U.S. are agriculture and defence. The trade policy in the country is designed for promoting the interests of agribusinesses. The production promotion is through research and dissemination of improved agricultural techniques; and large-scale projects for facilities in irrigation. The policies protect the farm-workers rights to decent working conditions and wages. The agricultural trade programs in the country are designed to expand and develop commercial outlets for U.S. agricultural products and commodities, provide international assistance on food, and offering the consumers in the country with access to a wider choice of items at reasonable prices, inclusive of those that are not produced domestically