STRATEGIC SELECTION OF THE TRADE POLICY INSTRUMENTS

What should a nation trade policy be and which is the best combination of trade policy instruments the governments may possibly select to protect their productions against exterior competition, is a question repeatedly raised. If the states are supposed to use tariffs or import quotas to protect their industry against competition than who will benefit and who will lose from the import quotas? As an respond, this approach intends to examine the policies adopted toward international trade, policies that involve a number of different actions as taxes on some international transactions, implicit or explicit subsidies for other transactions, quotas, and many other measures. Its goal is to evaluate the costs and benefits of tariffs, their welfare effects, winners and looser from tariff policies, as well as to exam the export or agricultural subsidies, explaining how they affect trade.