I think that the most important concern of a government trade policy should be the interest of consumers because if the governement protects producers and not allow producers from other countries compete with them, as we learned from our previous chapters, producers will be less likely to look out for the consumers. I would be like a state-directed economy, where firms/producers will depend on the government remain in business and will be less likely to be innovative with the goods they produce. As well as charge higher prices since importing would be limited, and therefore exploit consumers. Whereas if the government trade policy is concerned with consumers, more goods will be able to get imported at a lower cost and consumers will have more available options to choose from. Which would further promote competitions amoung producers and force them to be more innovative in order to win over consumers and their loyalty.
I think that the most important concern of a government trade policy should be the interest of consumers because if the governement protects producers and not allow producers from other countries compete with them, as we learned from our previous chapters, producers will be less likely to look out for the consumers. I would be like a state-directed economy, where firms/producers will depend on the government remain in business and will be less likely to be innovative with the goods they produce. As well as charge higher prices since importing would be limited, and therefore exploit consumers.
Whereas if the government trade policy is concerned with consumers, more goods will be able to get imported at a lower cost and consumers will have more available options to choose from. Which would further promote competitions amoung producers and force them to be more innovative in order to win over consumers and their loyalty.
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