name the trade policies, which are related export only?
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Domestic Policies and International Trade
Increasingly, at international forums where policymakers are discussing international trade issues, the topic of discussion is not what trade policies countries are using but rather what domestic policies are in place. The reason is that in our interconnected and globalized world, the domestic policies affecting energy, the environment, labor markets, health, and many other matters will affect not only what happens at home but also what, and how much, is traded and invested, and thus the outcomes for producers and consumers abroad. In short, domestic policies have international repercussions.
This chapter explores several simple domestic policies and investigates how these policies can affect trade flows with other countries. It also examines the welfare effects of these policies and concludes with a very important insight: that trade policies can be duplicated with a combination of several domestic policies. The implications of this notable insight are explored.
Policy analysis in international trade theory generally emphasizes the analysis of trade policies specifically. Trade policy includes any policy that directly affects the flow of goods and services between countries, including import tariffs, import quotas, voluntary export restraints, export taxes, export subsidies, and so on. During the 1980s and 1990s, as trade barriers came down, especially between developed countries, more and more attention was brought to the effects of certain domestic policy types, including their international effects.
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