POLITICAL ECONOMY AND ITS IMPACT ON INTERNATIONAL TRADE

Abstract

Purpose of the study: The aim of this study was to relate the political economy and its impact on trade and development of economy. One of the currently witnessed changes that strike out the most from previous years is the relatedness of each political economy aspect of the world. The dimension of economy can be found in different problems throughout the world and economy has become the most prioritized aspect in the 21st century. Methodology: The data for this study were obtained from existing literatures on political economy and trade as well. The methodology heavily relied on the existing previous literatures on the subject being dealt with. Results: The findings indicated that the government could decide to intervene in markets with the intention of limiting import or maximizing export. Trade barriers might be applied for the intention of limiting imports such as tariffs, import quotas, native gratified necessities, directorial strategies, and anti-dumping policies. Implications: Protectionist policies are being implemented by country by the means of protecting the local market from international market that might risk the industries inside the nation and might resulted in the depletion of the nation’s sovereignty rate. Protectionist policy can be considered as a barrier towards trade but is essential for the long run local industry.