Constituted as a Question



Constituted as a Question

Introduction

Traditionally trade was regulated through bilateral agreements between two countries. With the belief in mercantilism for many centuries, the countries used to impose high tariffs and other critical restrictions on international trade. Trade between nations has implications for decisions of the different actors involved in it, as the state that in order to achieve economic development and welfare of the population, an economic policy designed in the field of trade, exchange, fiscal, monetary and other, so the theoretical aspects which justify the exchange between nations and the design of trade policy become the basic foundation that guides the study of International Trade.

Trade policy is the generation of strategies and mechanisms to promote the economic integration process of a country, thus strengthening trade and investment flows between that country and the rest of the world. Trade policy seeks to create business integration processes and trying to facilitate access to foreign markets and advance the harmonization of rules governing economic activity. When these processes are successful, the specific weights of developing countries in the world market are greatly increased (Bown, 2002). The main objective of trade policy is to reduce domestic costs of production, contribute to modernizing the productive and make the country an attractive place to produce, diversify exports and expand export markets for our products export. The additional objective of trade policy is that governments negotiate international agreements to remove barriers to access, encourage foreign investment and facilitate the reallocation of resources towards more productive activities.

Trade policy should not be limited to the commercial release or introduction of instruments of export promotion. It must at the same time, pave the way for the opening and regulation of capital markets and services. It should be accompanied by increases in competitiveness that allow, in turn, enhance, sustain and increase the participation of national productive capacity in global production. Most economists consistently favor the liberalization of foreign trade, since the effects of trade restrictions are short term in nature, but in the longer term, only the free trade leads to a rational allocation and use of economic resources (Bown, 2004). Trolley storage practice, however, to free trade is a large number of barriers that used as instruments of trade policy - tariffs, quotas, voluntary export restraints, and so on. This paper aims to find the reason behind the difference between trade policies of United States and China.

Discussion

China

After the release, of China's economy has had a huge development has become a model of prosperity in the global economy all under the Communist Party of China, becoming a huge influence on the global economy. This is a reflection of the enormous power that China is taking its industry through its policies, especially trade policy being developed to begin a developed economy. Within the historical frame, the abrupt fall of China's economy was very large, caused by the Cultural Revolution the country had, showing weakness in the government-Maoist, so in the early 70's China began to realize that economies and ...