Please Identify Main Economic Motives Government Trade Interventions Drawbacks Method Inte Q34215116

Please identify the main economic motives for government tradeinterventions. What are the drawbacks of each method ofinterventions? Answer in depth

Expert Answer

Economic motives of government intervention in trade:

During the development phase of the infant industries, thegovernment tries to protect the infant industries in the country,In fact, in order to promote the strategic trade policy, some kindof interventions can also be initiated by the government in trade.This is provided by facilitating the firms to achieve the economiesof scale by the government along with the benefit of the firstmover. The probable advantages which can be obtained by thestrategic trade policy are that