The Impact Of Trade On Domestic Politics And The International Political System

1362 Words May 12th, 2016 6 Pages
One of the most important changes in the world economy since 1980 has been themove toward freer trade among countries across the globe.Economists agree that free trade is beneficial. Open trade promotesgrowth, improves economic welfare, and fosters the efficient allocationof resources. But countries often impose barriers to trade,engage in disputes over trade, and try to manage the sharpness of trade.Politics is central to these deviations from openness, a longstanding realization that has generated a vibrant writing on the Political Economy of international trade.The reciprocal impact of trade on domestic Politics and the international political system is important. Countries exercise political economy of international trade by controlling free trade system which is very much related with policy formulation of that countries. The structure of the government and the nature of the party system have been seen as important institutional factors shaping trade policy. In formulating trade policy Democratic leaders must think about various pressure groups and mass welfare of general people instead ofautocratic.Political Economy of international trade is consistent with to spread power or exercise of power by developed countries over developing or underdeveloped countries by using their economic dependency.
Political economy: - According to Adam smith –branch of science of a statesman or legislator concerned with:
- providing a plentiful revenue or subsistence for the people”…

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