HELLA MAE P.

RAMBUNAY 3/BSMA/B

THE POLITICAL ECONOMY OF INTERNATIONAL TRADE: A REFLECTION PAPER

Government intervention in markets by using seven instruments of trade policy

which are Tariffs, Tariffs, Subsidies, Import quotas, Voluntary export restraints, local
content requirements, Antidumping policies, and Administrative policies. As a result, the
government can either participate directly in the market or regulate it indirectly by tariffs
and restrictions. These actions can only be taken for political and economic reasons.
Free trade and its effects on national political power were discussed as part of the
International Political Economy. Economics and politics were regarded as different
concerns in modern globalization studies, with contrasting views on foreign relations
and globalization.
International trade provides two dimensions of trade, the opportunities, and risks
in nations, organizations, and individuals. Opening an economy to free trade with other
countries can potentially advance to all because it allows leads to higher levels of
productivity and efficiency, expands the opportunities to new businesses, and increases
the number of consumers. However, these could be results in some risks as they are
exposed to the global economy. Countries that on the third worlds that are more
vulnerable to these risks, they are countries that are hungry for free trade to cope up to
big countries. As Professor David McNally said, “Free trade imposed on the weakest
and evaded by the most powerful”.
Looking forward, being a weak country, for now, international trade is one of our
keys to raise the global economic status of the country. As I believe accessing more
negotiation towards other countries is another level of trading, keeping the relationships
through trust and connections because the most successful international trade that we
could ever have is true relationship.