In today’s interconnected world, trade policy is one of the most powerful tools a nation has in shaping its economic future. From defining how countries engage with global markets to determining what goods and services can flow across borders, trade policy directly impacts the prosperity, security, and relationships of nations. Whether it’s fostering economic growth, protecting local industries, or exerting geopolitical influence, trade policy is at the heart of every country’s strategy on the world stage.
In this article, we’ll explore the ins and outs of international trade policy, breaking down its core principles, the tools governments use, and how trade impacts everything from economic growth to international relations. Whether you’re a business owner, policy maker, or simply curious about the forces shaping global markets, understanding trade policy is essential to navigating the modern world economy.
What is International Trade Policy?
International trade policy is like the rulebook that governs how countries buy and sell goods and services across borders. It’s a combination of laws, regulations, agreements, and strategies that shape how a country interacts economically with the rest of the world. Think of it as the blueprint for how nations engage in business beyond their own boundaries—and it plays a huge role in shaping global relationships and economies.
At its core, international trade policy involves decisions about tariffs (taxes on imports or exports), quotas (limits on how much can be traded), and trade agreements with other countries. It can either promote free trade—where goods move with minimal barriers—or lean toward protectionism, where the goal is to shield domestic industries from foreign competition.
But why do countries need such policies? The answer lies in balance and strategic interests. Every country wants to protect its own economy while also taking advantage of what others can offer. For instance, a country rich in oil but lacking in agricultural products might use trade policy to exchange oil for food. The rules they set for this exchange can either open doors to prosperity or, if mismanaged, lead to economic conflicts.
International trade policy also plays a significant role in job creation, inflation control, technological transfer, and even diplomacy. When two nations sign a trade agreement, it’s not just about business—it’s often a political handshake, signaling cooperation and trust.
Moreover, trade policy affects everything from the price of your smartphone to the availability of seasonal fruits in your local market. A well-crafted trade policy can lower prices, increase product variety, and spur innovation by exposing domestic industries to global competition.
But not all policies are created equal. Some might benefit a country’s economy in the short term but create long-term dependencies. That’s why policymakers must constantly evaluate global trends, economic forecasts, and international relationships before adjusting their strategies.
In short, international trade policy is the silent engine behind much of what we consume and produce every day. It’s a powerful tool that shapes not just national economies, but the global marketplace as a whole.
Comparative Advantage
To truly grasp why international trade policy matters, we need to understand the principle of comparative advantage—one of the foundational concepts in economics and global trade. It explains why countries engage in trade in the first place and how they can benefit from it, even when one country is more efficient at producing everything.
So, what exactly is comparative advantage? In simple terms, it’s the ability of a country to produce a particular good or service at a lower opportunity cost than others. Opportunity cost is what you give up when you choose one option over another. For example, if Country A can produce both cars and computers, but it’s relatively better at making computers, it should specialize in that and trade for cars. Even if it can make both more efficiently than Country B, it benefits more by focusing on its comparative strength.
Let’s break it down with a real-world analogy. Imagine two friends: Ali and Sara. Ali is great at both writing and graphic design, while Sara is only good at writing. If they both try to do everything on their own, it’ll take them longer and the quality might suffer. But if Ali focuses on design (where his advantage is strongest), and Sara handles the writing, they can finish projects faster and more efficiently. That’s comparative advantage in action.
Now, scale this idea to the level of countries. For instance, Brazil has ideal conditions for growing coffee, while Japan excels in electronics. If Brazil specializes in coffee and Japan in electronics, both countries can trade and enjoy better products at lower costs. This mutual benefit is the heart of International Trade Policy and the guiding light for trade policies.
Comparative advantage also encourages specialization, which often leads to increased productivity, innovation, and economic growth. It allows nations to use their resources—labor, land, capital—more effectively. Instead of trying to produce everything domestically, countries can focus on what they do best and rely on trade to fill in the gaps.
However, this theory isn’t without its critics. Some argue that over-reliance on trade can make countries vulnerable to global shocks or lead to job losses in certain sectors. That’s where international trade policy steps in—to balance the benefits of comparative advantage with the need to protect domestic interests.
In essence, comparative advantage explains the “why” behind trade. International trade policy, then, is the “how”—the practical framework that helps countries leverage these advantages while navigating the complex realities of the global economy.
How International Trade Policy Works
Now that we’ve explored what international trade policy is and why comparative advantage drives global trade, it’s time to understand how trade policy actually works in practice. At its core, international trade policy is not just a set of ideas—it’s a powerful mechanism made up of real-world tools, institutions, and negotiations that shape the flow of goods, services, and investments across borders.
Let’s begin with the key components of trade policy:
- Tariffs – These are taxes placed on imported goods. Governments use tariffs to protect local industries from foreign competition or to generate revenue. For example, if a country imposes a 20% tariff on imported shoes, it makes those shoes more expensive, encouraging consumers to buy domestically made ones instead.
- Quotas – A quota limits the quantity of a specific product that can be imported. If a country only allows 1,000 tons of rice to be imported per year, that’s a quota. These are used to shield local producers from too much competition.
- Subsidies – Governments sometimes give financial assistance to local industries to make them more competitive on the global stage. This could be in the form of tax breaks, direct funding, or low-interest loans.
- Trade Agreements – Countries often enter into bilateral (between two countries) or multilateral (involving many countries) agreements to reduce trade barriers and set rules for smooth cooperation. Examples include the European Union (EU), North American Free Trade Agreement (NAFTA), or the Regional Comprehensive Economic Partnership (RCEP).
- Regulations and Standards – Trade policy also includes rules related to product safety, environmental protection, labor rights, and more. These standards ensure that imported products meet local requirements and ethical standards.
So, how do governments decide which policies to adopt? That’s where economic priorities and political strategy come into play. For instance, a country facing high unemployment might impose tariffs to protect domestic jobs. On the other hand, a nation looking to expand its tech sector might sign free trade agreements to gain access to cheaper components and wider markets.
International trade policy also works through institutions like the World Trade Organization (WTO), which helps resolve trade disputes, promotes free trade, and ensures countries follow agreed-upon rules. Countries bring complaints to the WTO when they believe another country is violating trade agreements.
In the real world, trade policy isn’t always straightforward. It involves negotiation, compromise, and often, a balancing act between protecting national interests and embracing globalization. For example, a developing country may want to open up its markets but still protect key sectors like agriculture or manufacturing from powerful international players.
Moreover, geopolitics often influences trade decisions. Countries may impose sanctions, restrict exports, or cut trade ties altogether based on diplomatic tensions. In these cases, trade policy becomes a tool not just for economics, but for asserting power and influence.
In conclusion, international trade policy works like a finely tuned engine that requires constant monitoring and adjustment. It connects the theory of comparative advantage with the realities of global commerce. When managed wisely, it drives economic growth, promotes innovation, and strengthens international partnerships. But if mishandled, it can lead to trade wars, economic instability, and strained relations. That’s why understanding how trade policy works is essential—for policymakers, businesses, and citizens alike.
How Can Trade Advance Foreign Policy Interests?
Trade isn’t just an economic engine—it’s also a strategic tool for shaping global influence and achieving foreign policy goals. Governments around the world have long used trade as a form of soft power, crafting trade policies and agreements that not only boost their economies but also strengthen diplomatic ties, build alliances, and even exert pressure on rival nations. In short, trade is one of the most flexible tools in the foreign policy toolbox.
Let’s start with the basics: when two countries trade regularly, they become economically interdependent. This mutual reliance creates a strong incentive to maintain peaceful, cooperative relations. For example, countries that are major trading partners are less likely to enter into conflicts with each other because there’s too much at stake economically. This is often referred to as economic diplomacy—using trade to build trust and reduce tensions.
Another key way trade advances foreign policy is through trade agreements. These deals often come with conditions or expectations that go beyond economics. For instance, a powerful country may offer favorable trade terms to a developing nation in exchange for support at international forums like the United Nations, or for adopting certain political or environmental reforms. In this way, trade can help export values like democracy, human rights, and environmental protection.
Additionally, trade sanctions—or the withholding of trade—can serve as a form of foreign policy enforcement. When a country violates international norms (like invading a neighbor or suppressing civil rights), other nations may impose trade restrictions to apply pressure. This form of economic punishment aims to influence behavior without resorting to military action.
Trade can also open doors for strategic partnerships. For example, energy deals between countries can strengthen ties and ensure long-term collaboration. Similarly, high-tech exports often come with shared research and innovation, which deepens relationships between governments and institutions.
Moreover, trade can help stabilize regions. By investing in trade infrastructure and opening markets in politically unstable areas, countries can promote development and reduce the root causes of conflict like poverty and unemployment. This is especially useful in foreign aid strategies where trade and economic development are paired with diplomacy.
In short, trade is far more than buying and selling. It’s a quiet force that shapes global alliances, spreads influence, and supports a country’s broader foreign policy agenda. When wielded thoughtfully, it can be a bridge to peace, prosperity, and strategic power.
Why Countries Trade
At first glance, the idea of countries trading with each other might seem obvious—if you don’t have something, you get it from someone who does. But when we dig deeper, we find a complex web of reasons why nations engage in trade, and why it’s not just beneficial but often absolutely essential for economic survival and growth.
1. Access to Resources and Goods
No country is entirely self-sufficient. Whether it’s natural resources like oil and minerals, agricultural products like wheat and coffee, or manufactured goods like smartphones and cars—every country has its strengths and weaknesses. Trade allows countries to access what they lack and exchange what they have in abundance. For instance, Japan imports oil while exporting electronics, and Brazil exports coffee while importing industrial machinery.
2. Specialization and Efficiency
As we discussed earlier in comparative advantage, countries can specialize in what they do best. This specialization leads to greater efficiency in production, lower costs, and improved quality. When each country focuses on producing the goods it can make most efficiently, the global economy benefits—and consumers enjoy better products at lower prices.
3. Economic Growth and Job Creation
Trade can be a powerful engine for economic growth. By opening up international markets, domestic producers can sell their goods to more customers, scale up operations, and become more competitive. This increased production often leads to job creation, investment in infrastructure, and greater innovation, which fuels long-term economic development.
4. Consumer Choice and Lower Prices
Trade increases the variety of goods and services available to consumers. You can walk into a store and buy avocados from Mexico, chocolate from Switzerland, and electronics from South Korea—all because of International Trade Policy. Moreover, competition from imports often leads to lower prices, giving consumers more bang for their buck.
5. Boosting Innovation and Technology Transfer
Exposure to global markets forces companies to innovate to stay competitive. Countries that trade often benefit from technology transfer—where knowledge, skills, and new technologies flow across borders. This exchange of ideas and know-how can lift entire industries and modernize economies.
6. Strengthening International Relationships
Trade fosters cooperation between nations, reducing the chances of conflict and promoting mutual understanding. When countries trade, they become interconnected, both economically and politically. These relationships often lead to further collaboration in areas like education, security, and environmental protection.
7. Stabilizing Prices and Supplies
Global trade allows countries to smooth out supply and demand shocks. For example, if there’s a drought in one region, imports can prevent food shortages. Similarly, oil prices can be stabilized through strategic international agreements and imports, ensuring energy security.
In summary, countries trade not just to get what they need but to grow stronger, smarter, and more connected. Trade is a lifeline in a globalized world—it creates opportunities, strengthens economies, and supports diplomatic harmony. Without trade, most nations would face higher costs, limited access to essential goods, and slower growth. Simply put: trade is not a luxury—it’s a necessity.
Reasons for Government Trade Policy Interests
Trade policy isn’t just about economics—it’s a reflection of a government’s broader strategic, political, and social goals. Governments carefully design and adjust their trade policies based on a wide range of interests that go far beyond simply importing and exporting goods. These policies influence domestic industries, national security, employment, diplomacy, and even a country’s global standing. Let’s explore the key reasons why governments take such a keen interest in trade policy.
1. Protecting Domestic Industries
One of the most common reasons for government involvement in trade policy is to protect local industries from foreign competition. This is especially important for new or vulnerable sectors that might not yet be competitive on a global scale. By using tariffs, quotas, or subsidies, governments can give local businesses the breathing room they need to grow and compete. This approach is often referred to as protectionism.
For example, a country may impose high tariffs on imported steel to shield its domestic steel industry. While this might raise prices for consumers, it can preserve jobs and ensure the long-term health of a critical sector.
2. National Security and Strategic Interests
Certain industries are considered vital to national security—like defense, energy, and food production. Governments may use trade policy to ensure that these industries are protected and self-sufficient, reducing dependence on potentially unreliable foreign sources. For instance, many countries stockpile oil or subsidize local agriculture to guard against global supply chain disruptions.
3. Balancing Trade Deficits
When a country imports more than it exports, it runs a trade deficit. Over time, large deficits can weaken the currency, increase debt, and lead to economic instability. Trade policy tools like tariffs or currency controls can help governments rebalance trade flows, encouraging more exports and limiting unnecessary imports.
4. Job Preservation and Creation
Governments often intervene in trade to protect employment. Free trade can sometimes lead to job losses in industries that can’t compete with foreign producers. By controlling the flow of certain goods and investing in competitive sectors, governments aim to preserve existing jobs and create new ones in high-growth areas. Trade policy is often tied directly to labor policy, especially in countries with high unemployment.
5. Influencing Global Politics
Trade is also a tool of foreign policy. As covered earlier, governments may adjust trade rules to reward allies, penalize adversaries, or promote political values such as democracy, human rights, and environmental standards. For example, granting preferential trade access to developing countries can be a way to support economic growth and stability in regions that matter strategically.
6. Encouraging Innovation and Technology
Some governments craft trade policies to promote high-tech industries, research, and development. By supporting exports in advanced sectors and controlling the import of competing products, countries can stimulate innovation, attract investment, and become leaders in global markets.
7. Public Health and Environmental Protection
Trade policies are sometimes influenced by health and environmental concerns. Governments may restrict imports of products that don’t meet national safety standards, such as contaminated foods or polluting vehicles. This ensures that trade supports sustainable development and public well-being.
Wrapping It Up
In the end, government trade policy is about more than economics—it’s about strategy, security, stability, and vision. Trade policies reflect a government’s goals and values, and when crafted wisely, they can boost national prosperity while shaping a stronger position in the global community. Whether protecting workers, securing vital resources, or promoting diplomacy, trade policy remains one of the most powerful tools in a government’s arsenal.
Comparative Advantage (Expanded)
We briefly explored comparative advantage earlier, but this concept is so central to international trade policy that it deserves a deeper dive. It’s not just an economic theory—it’s the backbone of global trade decisions, shaping how countries interact, develop, and compete.
Understanding Comparative Advantage
Comparative advantage is all about efficiency and opportunity cost. It means that a country should produce and export goods it can make at a lower opportunity cost than others—and import goods that others produce more efficiently. Even if a nation is more productive in all areas (called having an absolute advantage), it still benefits from trade by focusing on the sectors where it is relatively more efficient.
Here’s a classic example: Imagine two countries—Country A and Country B. Country A can produce both wine and cloth more efficiently than Country B. But Country A is much better at producing wine than cloth, while Country B is only slightly less efficient at producing cloth. If each country specializes in what it’s relatively best at, and then they trade, both gain more than they could on their own.
Why It Matters for Policy
Governments use this principle to guide economic specialization and trade policy. They encourage industries where their country has a comparative advantage, while reducing reliance on sectors where they are less efficient. This creates faster growth, improves resource allocation, and supports a more competitive economy.
For example, Germany focuses on engineering and manufacturing, especially automobiles, while Bangladesh has developed a comparative advantage in textile production. By focusing on their strengths and trading for what they lack, both nations benefit—and their consumers do too.
Real-World Challenges
While the theory is solid, real-life application isn’t always easy. Comparative advantage assumes free markets, perfect mobility of labor, and no external shocks—but the world is rarely that neat. Countries face political instability, environmental issues, unequal labor practices, and rapidly shifting technologies that can make yesterday’s advantage today’s burden.
Furthermore, industries that are not competitive may collapse when trade barriers are removed—leading to job losses and economic inequality. That’s why governments often step in with protective policies, retraining programs, and strategic tariffs, balancing economic theory with social realities.
Conclusion
Comparative advantage remains one of the most powerful drivers of trade policy. It explains why no country can or should try to do everything itself, and why cooperation often beats isolation. But for governments, the challenge lies in applying this principle wisely—maximizing the benefits while managing the disruptions.
Benefits and Downsides of International Trade Policy
International trade policy is a powerful instrument that can unlock tremendous growth—or create serious challenges—depending on how it’s designed and implemented. It’s not a one-size-fits-all strategy. What benefits one nation or industry might hurt another. That’s why it’s so important to explore both sides of the coin: the remarkable benefits of trade policy and the real downsides that governments and societies must address.
🌍 Benefits of International Trade Policy
1. Economic Growth and Job Creation
A well-structured trade policy can boost GDP by opening new markets, increasing exports, and attracting foreign investment. This growth translates into new job opportunities, especially in sectors where a country holds a comparative advantage.
2. Greater Consumer Choice
When trade barriers are reduced, consumers gain access to a wider variety of products, often at lower prices. Think of all the imported fruits, electronics, and clothing that would be difficult or expensive to find without International Trade Policy.
3. Increased Efficiency and Innovation
Competition from foreign companies pushes domestic firms to innovate and improve productivity. Trade policy incentivizes industries to focus on their strengths, eliminate inefficiencies, and adopt new technologies faster.
4. Stronger International Relations
Trade policy often fosters diplomatic and economic partnerships. Countries that rely on each other for trade are more likely to cooperate on other global issues, including security, climate change, and human rights.
5. Access to Critical Resources
Through trade, nations can obtain essential goods—such as oil, rare minerals, food, and medical supplies—that they may not produce locally. Trade policy ensures reliable, regulated access to these critical inputs.
⚖️ Downsides of International Trade Policy
1. Job Loss in Uncompetitive Industries
While trade can create jobs, it can also eliminate them in industries that can’t compete with cheaper or better imports. For example, textile workers in high-wage countries often lose out when production shifts to lower-cost regions.
2. Widening Inequality
Trade tends to benefit urban and high-skilled workers more than rural or low-skilled laborers, which can increase income inequality. The economic “winners” of trade don’t always help compensate the “losers.”
3. Overdependence on Global Markets
Relying too heavily on foreign markets for key goods can be risky. A global supply chain disruption—like we saw during the COVID-19 pandemic—can lead to shortages and economic instability.
4. Environmental and Labor Concerns
In the race to remain competitive, some countries may cut corners—resulting in pollution, unsafe working conditions, and labor exploitation. Trade policies without strong ethical standards can worsen these problems.
5. Loss of Cultural Identity
When foreign products and corporations dominate local markets, there can be a gradual erosion of traditional cultures, crafts, and values, particularly in developing countries.
⚖️ Balancing Act: A Smart Trade Policy
The best international trade policies aim to maximize the benefits while minimizing the harms. This might involve:
- Investing in retraining programs for displaced workers
- Enforcing environmental and labor standards
- Creating safety nets for vulnerable communities
- Structuring agreements that reflect shared values, not just profits
In short, international trade policy is like a double-edged sword. When wielded responsibly, it can foster prosperity and peace. When mismanaged, it can sow division and hardship. That’s why policymakers must strike a delicate balance—promoting openness and competitiveness while protecting people and principles.
Trade as a Punishment
While International Trade Policy is often celebrated as a path to peace, growth, and cooperation, it can also be used as a powerful weapon. Yes, you read that right—trade can punish. When diplomacy fails or nations violate international norms, governments may reach for one of their most effective tools: trade restrictions. This is where the concept of trade as a punishment comes into play.
🛑 What Does “Trade as a Punishment” Mean?
In simple terms, trade punishment involves using sanctions, embargoes, tariffs, or bans to economically pressure or isolate a country, company, or even individuals. Instead of sending troops, nations can apply economic pain through trade—cutting off access to vital resources, technologies, and markets.
🔧 Common Tools Used in Trade Punishment
- Sanctions: These can include freezing assets, banning exports or imports, or restricting financial transactions. The goal is to cripple specific industries or institutions.
- Embargoes: A complete ban on trade with a particular country. This is often used as a last resort.
- Tariff Increases: Slapping high tariffs on imports from a certain country makes their goods more expensive and less competitive—this sends a clear message.
- Export Controls: Blocking the sale of sensitive technology or weapons to nations that pose security risks.
⚠️ Why Governments Use Trade Punishment
- National Security: If a country is seen as a threat, restricting trade can limit its access to weapons, tech, or critical goods.
- Human Rights Violations: Trade restrictions are often imposed on regimes accused of abuses like genocide, oppression, or authoritarian crackdowns.
- Political Pressure: Sanctions can be used to force political change or to punish illegal actions, such as invading another country or interfering in elections.
- Economic Leverage: By controlling access to key markets, larger economies (like the U.S. or EU) can influence the decisions of smaller nations.
🌍 Examples of Trade Punishment in Action
- Russia: Many Western nations imposed sweeping sanctions after Russia’s invasion of Ukraine—banning oil imports, freezing assets, and cutting off banking access.
- Iran: Faced decades of trade sanctions due to its nuclear program, which severely impacted its economy.
- North Korea: Subject to a complex web of trade restrictions due to nuclear weapons development and human rights violations.
These measures are designed to exert pressure without direct conflict—a modern form of warfare, you might say.
⚖️ Is It Effective? The Debate
Trade punishment is not without controversy. Supporters argue that it sends a strong message and promotes global accountability. However, critics point out:
- It can hurt ordinary citizens more than political leaders.
- It may drive countries closer together (e.g., Russia and China strengthening ties under Western sanctions).
- Long-term sanctions may not always result in the desired political change.
There’s also a risk of retaliation, triggering a trade war that harms global supply chains and the broader economy.
Trade Policy Definition
Trade policy refers to a set of rules and regulations that a country uses to manage its International Trade Policy relationships. It’s the framework that determines how a nation interacts with the rest of the world in terms of imports, exports, and everything in between. Governments implement trade policies to protect national interests, promote economic growth, and achieve diplomatic goals.
The Core Elements of Trade Policy
- Tariffs: Taxes placed on imported goods to make them more expensive and protect local industries.
- Non-Tariff Barriers: Rules and regulations that restrict trade but don’t involve tariffs—like quotas, licensing requirements, and product standards.
- Subsidies: Financial assistance provided to local businesses to make them more competitive against foreign producers.
- Trade Agreements: Treaties or pacts between countries that determine how they will handle trade with each other, often aiming to reduce tariffs and barriers.
Trade policy is dynamic—it changes as governments react to economic shifts, international developments, and internal pressures. It can vary greatly from country to country, depending on their political landscape, economic goals, and international relationships.
Examples of Trade Policy Tools
Trade policy is implemented through a variety of tools, each serving a different purpose and designed to achieve specific goals, from protecting local industries to improving diplomatic relations. Let’s look at some of the most common and impactful trade policy tools:
1. Tariffs
One of the most traditional and widely used trade policy tools, tariffs are taxes on imported goods. They are primarily used to protect domestic industries from foreign competition by making imports more expensive. For example, a country might impose a high tariff on imported steel to help its local steel industry.
2. Quotas
A quota is a limit on the quantity of a particular product that can be imported or exported during a set period. Quotas are used to restrict competition for certain local industries and ensure that a domestic market isn’t flooded with cheaper foreign goods. For instance, a government might set a quota on the number of foreign cars allowed to be sold in its country to protect local car manufacturers.
3. Subsidies
Governments can offer subsidies—financial assistance or tax breaks—to domestic producers to make their products more competitive in the global market. This tool is often used in sectors like agriculture, where farmers receive subsidies to ensure they can sell their goods at competitive prices despite international competition. For example, the European Union has subsidized its agricultural sector for many years.
4. Import and Export Bans
Bans on specific imports or exports are another powerful tool. These are often used in situations where a country wants to punish another country or protect its citizens. For example, a country might impose an import ban on certain goods from a nation accused of violating human rights, or an export ban on critical technologies to countries seen as threats.
5. Anti-Dumping Measures
Dumping happens when a country exports goods at a price lower than the cost of production, undercutting local markets. In response, governments can implement anti-dumping tariffs to level the playing field and prevent unfair competition. For example, the U.S. has imposed anti-dumping tariffs on Chinese steel in the past.
6. Trade Agreements and Free Trade Areas
Countries often enter into trade agreements or form free trade areas (FTAs) where they agree to reduce or eliminate tariffs and non-tariff barriers. Notable examples include:
- NAFTA (North American Free Trade Agreement)—now the USMCA—which includes the U.S., Canada, and Mexico.
- EU Single Market, which allows for free movement of goods, services, people, and capital within the European Union.
7. Currency Manipulation
Some countries use currency devaluation as a trade policy tool to make their exports cheaper on the global market. By artificially lowering their currency’s value, they can boost export competitiveness, though this can lead to disputes with trade partners.
Conclusion
Trade policy tools give governments the flexibility to regulate and shape trade in ways that align with their economic objectives. While some tools are designed to protect local industries, others encourage international cooperation and growth. Regardless of the approach, effective trade policy is crucial to a country’s prosperity and its role on the global stage.