Speaking about trade policy in general, it is most often involve policies governing matters of foreign trade.Foreign trade policy implies a set of measures, the levers of the state on foreign trade relations.The most commonly used levers of foreign policy are taxes, subsidies, customs duties and rules of trade and non-residents of a country.
In practice, trade policy often has an impact on exports and imports of goods.If you look at it from this point of view, there are several models of foreign trade policy.
first model - protectionism.It refers to the introduction of such rules, imports of goods which would not allo
w importing their owners have economic benefits from its implementation of the said territory.Installed or inflated fees or outright bans on imports.This policy is rarely used, as it can lead not only to economic tensions in the country, but also foreign policy.Protectionism may have its varieties.The first type - selective protectionism, aimed at a specific group of goods or a specific country.The second - an industry whose main objective is the protection of certain industries or the economy.The third - a collective protection, which involves the use of protectional measures in several countries simultaneously.The fourth version - hidden protectionism, which is different from all the others lack the use of customs practices.
second model of foreign policy - the policy of free trade.The name speaks for itself.State completely removes all trade barriers both within the country and in its customs borders, allowing the free flow of goods run.Application of such a policy is possible only if the national economic development, which would allow businesses to compete with imported goods and services.
occupies a special position monetarist model, according to which the main economy of the country is not well-developed national economy and strong trade links, and an abundance of money in the economy.In terms of trade relations abundance of funds can be achieved not only the implementation of domestically produced goods, but also due to mediate between the countries that form the supply and demand for goods and services.Also, the presence of large amounts of money in the economy can be achieved by monetary policy and the development of international lending and investment.But we must not forget that the excess funds will inevitably lead to inflation.