Commercial
Policy:
"By commercial policy or
trade policy is meant all
measures regulating the external economic relations of a country, that is
measures taken by a territorial government which has the power
of assisting or hindering the exports or imports of goods and
services". Continue
reading.
The main objectives of the modern commercial policy
are:
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The main instruments or toots which are now a days
used for achieving the objectives of commercial policy
are as follows:
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Adam Smith like the Physocratics of
France, was a staunch advocate of free trade. He was of the view that state
should not interfere in the internal economic life of the citizens of a country
as it hampers economic progress. He was against putting any kind of restrictions
on the imports and exports of commodities. In the words of Adam Smith:
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"A policy of encouraging domestic industries by the imposition of tariffs on
foreign products and payment of bounties to home industries is known as
protectionism". Continue reading.
In order to shelter home industries, foreign/international trade
has following barriers:
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