The Ways in Which Government Interfere with Free Trade and The Associated Costs and Benefits-政府干预自由贸易的方式以及相关成本与效益 [8]
论文作者:英语论文论文属性:议论文 Argument Essay登出时间:2014-04-09编辑:caribany点击率:15831
论文字数:5826论文编号:org201404081134526352语种:英语 English地区:英国价格:免费论文
关键词:Government Interfere政府干预Costs and Benefits成本和效益free trade
摘要:本文主要分析了政府干预自由贸易的好处和坏处。政府干预会造成关税壁垒,非关税壁垒,这阻碍了国家和国际自由贸易的发展。而自由贸易会促进资源的合理配置,经济发展和开放。但是政府干预在某些情况下也是需要的,不过总体而言政府干预应当弱化和改善。
suitable invention of the government could positively solve the problem that caused by monopoly enterprises. As the government agrees to introduce more enterprises in the industries, necessary competition would lead the former monopoly enterprises increase their efficiency as well as lower the cost greatly. Thirdly, the government can hold the macro-development of the country, therefore, the suitable intervention of the government could push the market develop in an up-graded way which is more helpful for the comprehensive development of the country (Doz & Hamel, 1998). For example, the above points can be justified by the developing route of Chinese’s high-tech industries as well, the intervention by government has helped high-tech firms in domestic market gain more fairness and competitive capabilities in competition.
4.2 Disadvantages of government's intervention with trade
Firstly, people who support the intervention of governments with trade believe that the market is imperfect which means there always exists market failure to some degree, therefore, it is necessary for the government to implement intervention with free trade so as to prevent the possible problems that may appear in free trade and markets. There are several disadvantages for government intervenes with free trade. One of the most important points is that the government is no less smart than the market. When market failure happens, compared with the government, market is much smarter than the government (Castells, 1996). The intervention of governments with free trade especially the direct intervention would usually make things worse. For example, in China, there exists local trade protectionism with various degrees among different provinces. In the aims of protecting main interests and profits of local enterprises, one province would have restrictions on the products from other provinces and areas in different degree. This in fact to a large degree intervene the free trade and makes local enterprise weaker and less competitive when facing with foreign direct competition (Castells, 1996). Therefore, in the aspect of the whole industry even the whole country, this is obvious not good for national enterprises competing with foreign rivals.
Secondly, the intervention of the government with free trade would easily form corruption and related community interest. For example, military industrial complex is one typical case for the government to intervene with free trade. Military industrial complex appears because the government requires to strengthen the defense capacity. The government purchase munitions from munitions merchant and the more the munitions, the more interest the munitions merchant can get (Baier and Bergstrand, 2002). Under such occasion, munitions merchant would search for the spokesperson from the parliament, the government and the armies so as to make the government accomplish more business. These people combine themselves with the munitions merchant and form an interest group. In order to maintain the interests of the group, the government must have strong and sufficient reasons to purchase the munitions. Thereafter, the government may possibly create some unnecessary disputes in international affairs so as to tense the international situation or even raise a war directly.
Thirdly, it would cause market distortion. Government's intervention with free trade would disrupt the norm
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