Question

According to the simple positive theory of international trade policy, why are the restrictive trade policies implemented even though they are inefficient ?

Explain the concept of sustainable development ?

Answer 1

Restrictive trade policies are implement due to following reasons-

1. Job protection - Free trade enables the people of the country to obtain each others exports at a cheaper rate.But none of the industries are able to sell what they produces. Even at the time of recession, employment rate decreases and they have to take help of imports which can destroy the local market. Due to these situations government impose restrictions on import.

2. Trade interference -Government restrict mainly quota , tarrif ans subsidies. Quota allows the government to control imports so as to. protect local industries. Tariif increases the price of consumer goods and the profits earned from tarrifs go to government or to develop industries. From subsidies government are able to improve the economy

3. Protection from cheap labour- When there is a level ground, free trade takes place. Foreigners pay their laborers starvation wages hence products from foreign market are much cheaper.

Concept of sustainable  development -

sustainable development means principle through which human development goals can be attained. It is the ability of natural systems to provide natural resources and services of economic system on which the economy depends.  

In short, it means development through which present need can be fulfilled without compromising the future generations to meet their needs.

Earlier this concept was made for sustainable forest development but as the concept ugraded the idea have been shifted for future generation to meet their needs in form of economic social and environmental development. It is an approach whuch lead us to the end point of sustainabilty.

The concept of sustainable development is still under criticism as question arises till now as to what we actually need to sustained in sustainable development. There is no such sustainable thing that is non renewable resources that can be used.