what is trade policy
Dear student,
Trade policy refers to the rules and regulations that aim to change the trade flows between countries. It constitutes taxes, quota, tariffs, etc. Import substitution is a trade policy that aims to restrict imports by encouraging domestic production. Trade policy impose barriers on quantity of trade by imposing tariffs, import quota, etc.Trade policy protects the domestic industries. It helps to maintain balance of foreign exchange in the economy.
Regards
Trade policy refers to the rules and regulations that aim to change the trade flows between countries. It constitutes taxes, quota, tariffs, etc. Import substitution is a trade policy that aims to restrict imports by encouraging domestic production. Trade policy impose barriers on quantity of trade by imposing tariffs, import quota, etc.Trade policy protects the domestic industries. It helps to maintain balance of foreign exchange in the economy.
Regards