How Do You Formulate National Trade Policies?
The formulation of national trade policies is the ability of a nation to set the rules of its activity in the global economic system. As a result, it is largely a state-led enterprise, though usually with substantial private sector involvement. The variables that must be taken into consideration are legion, but the basics of setting policy are more or less the same across the globe. Students should be aware of the basic variables that need to be understood so that trade policy can be intelligently debated. Consider the strengths and weaknesses of the national economy. Variables here include the education level of the population, existing supply-side variables, the natural resources of the country, as well as its specific strengths in terms of production. The basic issues here are the various products the country has an advantage in making, as well as the natural resources the country has at its disposal. Formulating trade policy also must include decisions concerning market access. The
