Question

• Given the different perspectives of diverse groups regarding international trade, on what should national trade policy be based? (Efficiency? Most beneficial impact on production (GDP) and economic growth? The largest number of people who benefit? The smallest number of people who are harmed? Other considerations?)

Answer 1

National trade policy should be based on efficiency and should increase impact on production and economic growth.A country frames national trade policy in such a way that traders find it easy to carry out trading activities with other international traders.Rules and restrictions regarding trade are modified and framed to increase effciency in foreign trade.Government expects that if foreign trade efficiency is increased then significantly production rate will be boosted.If maximum  trading activities are carried out with foreign countries ,then export and import rate tend to rise, which causes high demand for exported goods in foreign market an ultimately producer country should increase their production and output level which leads to rise in gross domestic product level.If gdp level is on increasing mode then it is clear that economy is growing.

While framing national trade policy,it is important to consider the largest number of people who are benefited.It is considered to provide benefits to maximum population as framing according to this factor creates work by increasing employment rate.Even most of the people are benefited as goods are sold at reasonable prices if produced in the country instead of importing.

Therefore,when framing national trade policy;efficiency,impact on production and economic growth and number of people benefited are taken into consideration.These aspects lead to growth in both international trade and in country's economy.