Policy and Trade
The history of trade readily reveals that it has rarely ever been free from government policy. Even when one country may have pursued a laissez-faire policy, this has not been so of its trading partners. A government, therefore, is interested in knowing how it can affect a country’s trade and what its effect is upon a trading relationship when it carries out either a foreign policy or a domestic policy which has ramifications in the external sector. Under this heading we shall discuss tariffs and exchange restrictions, but with particular attention to tariff policy in a number of its facets.
Unable to display preview. Download preview PDF.
- 1.H. G. Johnson, ‘Comparative Costs and Commercial Policy’, Pakistan Economic Journal, VIII (1958) 29-43.Google Scholar
- 2.A geometrical derivation can be found in C. P. Kindleberger, International Economics, 4th ed. (Irwin, Homewood, Ill., 1968) appendix c.Google Scholar
- 1.J. Viner, The Customs Union Issue (Carnegie Endowment for International Peace, New York, 1950).Google Scholar
- 1.J. E. Meade, The Theory of Customs Unions (North-Holland, Amsterdam, 1956).Google Scholar
- 2.The terms of trade effect is explicitly taken into account in the offer-curve treatment of customs union theory, a treatment considered particularly by J. Vanek, International Trade: Theory and Economic Policy (Irwin, Homewood, Ill., 1962) pp. 346-59.Google Scholar
- 1A.very interesting discussion of this will be found in H. G. Johnson, Economic Policies Towards Less Developed Countries (Allen & Unwin, 1967) pp. 170-81.Google Scholar