What Is Strategic Trade Policy? What Are the Pros and Cons

question 115

Essay

What is strategic trade policy? What are the pros and cons of such a policy by a nation in its dealings with other nations?

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Definitions:

Positive Externality

A benefit that affects a party who did not choose to incur that benefit, often leading to underproduction of the good or service in absence of intervention.

Education

The systematic process of facilitating learning, acquiring knowledge, skills, values, and attitudes.

Positive Externality

A benefit that affects a party who did not choose to incur that benefit, typically not reflected in the market price, like vaccination.

Government Agency

A permanent or semi-permanent organization in the machinery of government that is responsible for the oversight and administration of specific functions.