International trade theory in Chapter 4 discusses the theoretical basis of international trade and the
advantages of fair and unrestricted trade to the world economy. In actual fact, it is seen that all countries
interfere with international trade in varying degrees. This chapter examines the dierent rationales for
protection adopted by nations and then looks at the dierent forms that protection can take. It also exam-
ines trends in global trade, the direction of foreign trade in India and examines the dierent measures
taken by the government to promote exports in India.
GOVERNMENT INTERVENTION IN
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