Question

Please discuss why governments sometimes intervene in trade and what instruments they use to promote and or restrict foreign trade.

Answer 1

Before 1960 there were no inter-country or globalization so the risk of trade loss does not exist. Sometimes because of the foriegn investment into the country there is threat to local business at that time government intervens with the use of alteration in foriegn trade policy. Many a times to control or curb the fraudulent practises in trade government bring course of action and intervenes the trade with in the country like regulating the Telecom, Power sector etc.