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International Trade Policy: A Technical Note
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This Note explains some of the key issues of international trade policy. That entails examining the reasons that governments impose tariffs and non-tariff barriers to imports, although there are some other issues as well, such as export subsidies and financial policies that affect international trade. A core aspect of this policy analysis is to recognize that governments need to pursue policies that have not just economic goals, but also political and social ones as well. So, a trade policy that hurts domestic consumers, for example, may be very sensible for a government that needs to satisfy a particular political or social group in the country, such as a powerful union or a political party whose constituents oppose imports.