Policies& Mngmt - Trade policy (1 Viewer)

[sickwithlove]

can ne1 pls give me an example of a direct and an indirect policy to promote/ restrict trade? It sounds familiar but i can't think! thanks!

 

[prusso]

well an indirect way is by using monetary policy to affect the interest rate....which affects the value of the exchange rate which will effect the demand and supply for australian exports and imports...

a direct way is signing a free trade agreement for example the us free trade agreement between us and america which promotes trade between the two nations...any trade bloc, agreement, organisation or reduction in trade protection will directly promote trade

hope im right, if im wrong someone correct me

 

[sickwithlove]

I'll take ur answer... i can't find it anywhere so it musn't be too important! thanks!

 

[prusso]

well its part of the globalisation topic....trade agreements, organisations and policies to integrate world markets is pretty important, especially with your case study...