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Commercial policy

A commercial policy also termed as trade policy or international trade policy is the government’s policy governing international trades. It is used to cover all topics related to international trade. It describes the regulations, policies and compliances that dictate how companies and individuals in one country conduct commerce with companies and individuals in another country. These policies influence exports and imports, either through quantities, prices, duties or which goods will be traded or not. Governments can impose restrictions on trade:
  • On the basis of domestic employment
  • Protect local industries
  • Reduce commercial deficit
  • Instruments of Commercial policy
  • Tariffs
  • Subsidies
  • Restrictions
  • Agreements
  • A tariff is a tax levied on an imported or exported good. There are mainly two types of tariffs: unit tariffs and value tariffs. and instruments that promote certain industries: The state may subsidize certain industries which replace imports or increase exports. restrictions consist of import and export quotas, Bilateral agreement Free trading, custom unions References : https://m.economicpoint.com/commercial-policy

    By RoMi blogs & Education

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