In the words of Haberler:
“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”.
Factors affecting Commercial Policy or Trade Policy:
In modern times, the commercial policy or trade policy of every country is generally based on the encouragement of exports and discouragement of imports. The exports are encouraged by giving preferential freight rates on exports, consular establishments subsidized merchant marines etc. The imports are hindered by erecting the tariff wails, exchange controls, quota system, buy at home campaign etc.