free trade and government interventions

free trade and government interventions. Discuss the nature of conflicts in global business, including free trade and government interventions into international trade. The root cause of trade conflict is that every country has a natural interest in protecting its own security and supporting its industries, workers, and consumers. The result is that countries often deviate from the notion of free trade by intervening in various ways, including the use of tariffs, import quotas, embargoes, restrictive import standards, export subsidies, antidumping measures, and sanctions.

CRITICAL THINKING: (1) What would happen to U.S. workers if all trade intervention suddenly disappeared? (2) What would be the effect on U.S. consumers?

IT’S YOUR BUSINESS: (1) Would you be willing to pay more for your clothes in order to keep more apparel manufacturing in the United States? Why or why not? (2) Do you or would you consider purchasing “fair trade” products, for which prices are set high enough to ensure a living wage for everyone involved in their production, even though these higher prices can make them less competitive in world markets?

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