Instruments of Government Intervention
-
7.2 Know the instruments of government intervention.
The main instruments of trade intervention and the traditional forms of protectionism are tariffs and nontariff trade barriers. Individual countries or groups of countries, such as the European Union (europa.eu), can impose these barriers. However, barriers can be a serious impediment to cross-border business. The United Nations estimated that trade barriers alone cost developing economies more than $500 billion in lost trading opportunities with advanced economies every year.11 Exhibit 7.2 highlights the most common forms of government intervention and their effects.
Exhibit 7.2
Types and Effects of Government Intervention
| Intervention Type | Definition ... |
|---|
Get International Business: The New Realities, 5th Edition now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
