Discussion 3
Political considerations, economic concerns, and cultural requirements are the primary drivers behind government interference in commercial transactions.
It is possible that the government would intervene for political reasons like wanting to protect domestic industry from competition from other countries, or it might want to protect jobs in the country by imposing restrictions on imported goods and services. Both of these reasons fall under the category of political reasons. One illustration of this would be the tariffs imposed by the Trump administration on goods imported from China.
The government may choose to intervene in the economy for a variety of economic reasons, including the desire to stimulate the home economy through the provision of subsidies or tax breaks to domestic enterprises or through the imposition of tariffs on foreign goods(Kawamori,2021). A good illustration of this would be the Common Agricultural Policy of the European Union, which offers financial assistance to farmers in the member states of the EU.
It is possible that the government would intervene for cultural reasons, such as trying to preserve traditional culture by shielding certain industries or items, or by preventing certain imported goods from entering the country. One illustration of this would be the import quotas placed on rice by Japan. These quotas are put in place to safeguard the country’s centuries-old rice growing economy.
In certain circumstances, I believe it is appropriate for governments to become involved in trade disputes. The arguments that I think have the most weight are the ones that have to do with maintaining economic stability and safeguarding cultural values. The intervention of the government can assist safeguard particular industries against unfair competition, which can lead to lower pricing in these commodities. Consumers can profit from this, as lower prices can be passed on to them.
