Question

Clipping 3A

Chapter 2 and 3
How do Political, Economic or Legal differences influence trade policy?
Find an article that provides an example of a country (not US) that is employing it's basic political, economic or legal ideology in their business and/or trade policy.
Ex. can you imagine how the legal profession and legal studies would be different based on these differences?

It have to be one page long and use research artictle to support your answer. Please post the website you find the article

Answer 1

The difference between the economic, political and legal policies can be explained by taking an example for each of the case.

Economic Policy: The Fed could decide to deliberately devalue the US dollar, which makes the American goods cheaper for the foreigners. This devaluation of currency later leads to increased exports thereby leading to a more favorable trade policy.

Political Policy: The US govt. might get into a strife with the Russian govt., which in turn affects the trade relations with l Russia. Thus, this is how political policy affects trade

Legal Policy: The Supreme Court may declare that the import of chewing gums should be banned. This inturn affects the imports of chewing guns, thereby affecting the trade policy of this particular good.

Taking example of India.

Economic Policy: The Indian govt. is promoting the developed of SEZs and export promotion units in order to encourage production of goods that could be exported abroad.

Legal Policy: The Indian Supreme Court in the 1990s had prevented the import of agricultural products in order to protect the farmers against foreign competition.

Political Policy: The political difference among India and Pakistan has prevented the cross border trade between the two countries. Thus, India tends to import certain goods from Brazil at exorbitant prices even though the same good could have been imported from Pakistan at a much cheaper price.