Political Economy of International trade †MyAssignmenthelp.com

Question: Discuss about the Political Economy of International trade. Answer: International trade has always been a subject to the politics of the nations that are involved. The exchange of goods and services between multiple countries depend on the various political policies that are impending in those nations (Frieden Lake, 2015). The international market for trade is huge and countries make huge money from such trades as they exchange the abundance produce with other countries for money or other services. For a nation to develop and progress on the economic front, it is essential for them to involve in the process of free trade so that the economy does not face any kind of stagnation and keeps growing. Trade of a nation depends on the political actions that are persistent in the country, it is essential for a country to have a pro-trade government and the relationship they share with other trading countries have to be good so that they can involve themselves in the various trading practices. The practice of free trade is one of the most important political factors that create the stage for a country to become an eminent player in the global trade arena. The liberalization of trade has been a feature that has been eminent in the global stage from the 1980s and hence the global trade market has kept growing since then (Dawson, 2015). The political scenario has changed since then and it is seen that the countries have become friendlier with each other as the political heads have realized the need for a good relationship as it will help in trade. However, it is seen that with passing time, there are a few countries that are moving away from the free trade and have started shifting towards political protectionism. The free trade has lead to the mixing up of cultures and has lead to the degradation of the ethnic cultures of the place. Due to the inflow of good from the foreign countries, it is seen that the local small producers are not getting any share of the market and the products they produce are being sold are low prices and they fac e huge loses (Irwin, 2015). People have moved away from the ethnic to the imported goods and the local producers are slowly moving out of business. Such a practice will lead to the economic situation of the country to fall and the number of unemployed to increase. The political theories of hegemonic stability and dependency theory have triggered the movement away from free trade for various countries as they have felt the need to preserve their own culture. Many a times it was seen that in the earlier days, it was the pressure from the various domestic groups to open up the market and the government complied to such demands but now the politics of trade has taken a turn and it is evident that all the positives and negatives are well evaluated before a decision is taken regarding the trade policies. Reference Dawson, L. (2015).Toward Free Trade in Canada: Five Things the Federal Government Can Do to Open Our Internal Market. Fraser Institute. Retrieved from: https://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.730.3567rep=rep1type=pdf Frieden, J. A., Lake, D. A. (2015).World Politics: Interests, Interactions, Institutions: Third International Student Edition. WW Norton Company. ISBN 0393283526, 9780393283525 Irwin, D. A. (2015).Free trade under fire. Princeton University Press. ISBN 1400866189, 9781400866182