INTERNATIONAL BUSINESS

discusses

considerations in assessing whether an action is good or bad in carrying out a relationship other people so that divisions and misunderstandings do not form (Tarigan et al., 2022) Science is related to the issue of the value of knowledge which in philosophical studies can be classified into three types, namely: The logical value here is the value of right or wrong (Nurachmi & Hidayatulloh, 2021), As Aesthetics are values related to beauty, physical appearance, not ethical values. Aesthetic values are related to appearance, while ethical or bad moral values are related to human behavior. Philosophy and science are two interrelated things. The birth of knowledge cannot be separated from the role of philosophy. On the other hand, the existence of philosophy is strengthened by the development of science. This happens because there is a change in thinking patterns from mythocentric to logocentric, which initially believed in gods turned to rational things (Nmr, 2023). Managerial Implementation Managerial implementation is the ability to implement effectively and efficiently in managing resources through the processes of planning, organizing, directing and monitoring with the aim of achieving organizational targets (Afandi & Mardliyah, 2023). Below, we will discuss some important aspects of managerial implementation. Making Ethical Descisions Internationally An ethical decision is a decision that is legally sound and has a moral basis that can be accepted by society in general. An individual's ethical decision-making is significantly shaped by a range of individual factors, including ego strength, reliance on the surrounding environment, and self-discipline, alongside situational factors like the immediate work environment, the culture within the organization, and the attributes of the job according to (Trevino, 1986, dan Jones, 1991) in (Damayanti, 2022). In this context, there are seven steps that international companies and their managers can implement to incorporate ethical considerations into business decisions: endorsing the hiring and advancement of individuals with sound personal ethics, fostering an organizational culture and demonstrating leadership practices that prioritizes ethical conduct, establishing a decision-making procedure that mandates the inclusion of ethical aspectsin business decisions, making corporate social responsibility the basis of company policy, and pursuing sustainable strategies.

Hiring and Promotion Sunyoto (2012:93) explains that recruitment is a series of actions that include searching, finding and attracting individuals who have the potential to become employees in an organization, based on motivation, skills, expertise and knowledge that have been identified in human resource planning (Lina, 2020). In principle, every company has guidelinesfor procuring new employees. According to Rivai Veithzal (2005) in (Hasibuan, 2020), Recruitment principles include: Ensure that the quality of employeesrecruited isin line with existing needs,ensure that the quantity of recruited employees matches the number of available positions, minimize the costs involved in the recruitment process, and consider planning, legal considerations, and flexibility in the recruitment process. According to Budiantoro, an effective selection system is categorized into three main aspects, namely: accuracy, which reflects the ability of the selection process to correctly predict the performance of prospective applicants; fairness, which ensures that all qualified applicants have equal opportunities in all stages of selection; Confidence, refersto the level of confidence of individuals involved in the selection process regarding the benefits that will be obtained from the process (Titisari & Ikhwan, 2021). In the recruitment process that is generally used, information about job vacancies is provided via pamphlets, then applicants send an application letter along with the required requirements according to the qualifications set by the company. After that, they undergo a series of tests, including physical, knowledge, health and psychological tests, then complete the test, and after that, they complete the employment requirements and sign the contract. (Endrayani, 2020). Promotion refers to a situation where an employee is moved from one job position to a position that has more responsibilities, is at a higher level in the organizational hierarchical structure, and is usually accompanied by an increase in income. (Widayani & Putra, 2020). Position promotions are carried out with the aim of optimizing the use of existing human resources in the organization, and also as an effort to renew or regenerate human resources in the organization to ensure the continuity of the organization (Haryadi et al., 2022). Promotion principles according to Hasibuan in (Fadli, 2020) includes: Trust Principle

Promotions should be based on confidence or trust in the employee's integrity, ability and competence in carrying out their duties effectively in the position being considered. New employees will be promoted if they can demonstrate the integrity, ability and competency required for the role. Principle of Justice Promotion must be based on the principle of justice, namely a fair evaluation of the integrity, ability and competence of all employees. Evaluations must be carried out honestly and objectively, without favoritism or prejudice. The highest-ranking employees should get the first chance to be promoted, regardless of factors such as their ethnicity, group, or background. Promotions based on the principle of justice can be a motivational tool for employees to improve their performance. Principles of Formation Promotions must be adjusted to existing formations, because employee promotions can only occur if there are positions available. Therefore, a clear job description is needed for each position to be filled by an employee. Promotions must be in line with the needs of existing position formations within the company. Organizational Culture and Leadership Organizational culture develops through concepts initiated by organizational leaders, and then transferred to other members through a learning and experience process so that organizational culture plays an important role in the organization in determining leadership behavior and orientation. (Indajang et al., 2020). Culture in an organization has a supporting role in encouraging companies to improve the quality of employee performance, because culture is behavior that is implemented in daily work routines (Armawan & Suana, 2019) in (Marpaung & Darmawan, 2022). Apart from that, leadership also has an impact on increasing employee performance, as indicated by Barrow in 1976(Sungkono, 2022). Improved employee performance can be achieved when a leader has authority in the eyes of employees, has the authority to make decisions, involves subordinates in the decision-making process, is responsible for all team members, and serves as an example for subordinates to follow (Sutoro et al., 2020). Decision Making Process

According to (Manalu, 2020) explains that The process of decision-making comprises these stages: Problem Identification: Leaders are expected to be able to identify existing problems in the organization. Problems arise because there is a mismatch between the currentsituation and the goals to be achieved or standards to be met. Problems also arise when there are obstacles or difficulties in achieving these goals. Data Collection and Analysis: Leaders need to collect and analyze relevant data to help solve problems. The problem solving process involves gathering facts, discovering ideas, and finding solutions. Creating Policy Alternatives: Once the problem is clearly identified and structured, leaders need to think of various ways to overcome it. This involves creating policy alternatives along with considering their consequences, both positive and negative. It is important to make careful estimates using adequate information. Selection of the Best Alternative: Leaders must choose one alternative that is considered the most appropriate to overcome a particular problem. This selection is based on careful consideration and recommendations provided. Decision Implementation: The decision implementation process includes the leader's ability to accept the positive or negative impacts of the decision. When facing negative impacts, leaders must have other alternatives that can be used. Implementation of decisions is often a challenge because decisions taken by a small number of people must be accepted by many people. Monitoring and Evaluation of Implementation Results: After decisions are implemented, leaders should be able to measure the impact of the decisions that have been made. Evaluation needs to be carried out, and the factors to be evaluated must be determined from the start, not after implementation begins. Although this may give rise to debate, it increases accuracy in the evaluation of the results. Corporate Sosial Responsibility Corporate Social Responsibility (CSR) is sustainable involvement that shows a company's commitment to creating a positive impact on the environment and communities in its region (Sri Ardani & Mahyuni, 2020). According to Budimanta et al. (2008:24) This is a crucial process in managing costs and profits in business activities with stakeholders, both internal

(such as employees, shareholders and investing parties), and external (including institutions, government regulations, society, civil groups, and other companies)(Akbar & Humaedi, 2020). Corporate Social Responsibility (CSR) is a practice carried out by business entities or stakeholders with socially responsible behavior towards society. In this case, companies or business actors emphasize their attention to three main aspects, namely economic, social and environmental. This is an ongoing initiative and aims to prevent crises by improving the company's reputation or image (Pratiwi, 2022). The principle of CSR is that companies must assume responsibility for making positive contributions to society and the environment in return for the profits they obtain (Nabilla & Hamid, 2021). In accordance with ISO 26000, Corporate Social Responsibility (CSR) represents an organization's obligation regarding the impacts of its choices and actions on society and the environment. This is achieved through transparent and ethical conduct, which should: Adhering to sustainable development and the well-being of the community's principles, considering the stakeholders' interests, complying with relevant regulations, and aligning with international standards, integration is practiced across all facets of the organization's operations, including the products and services provided (Pasila et al., 2022). Sustainability According to Suhayati (2011), corporate sustainability developed in response to community encouragement for corporate ethics which emphasizes social responsibility which includes aspects such as employee wages, local community participation in human resource development which has the potential to have a positive economic impact on the community (Dura, 2022). Sustainability is believed to be a long-term commitment that embodies a company as an entity that pays attention to environmental and social issues (Masulis & Reza, 2015) in (Trisakti, 2023). In order for a program to be sustainable, a sustainable program implementation strategy is needed which is based on a social analysis of needs, potential and problems (Larasati & Sunartiningsih, 2020). Sustainability implementation refers to the way a company carries out its operations. The concept of sustainable development, in this case, not only includes conventional principles that emphasize increasing value for shareholders, but also includes the interests of all parties involved (such as employees,

customers, suppliers, society and the environment) in the process. (Nurfahmi & Anis, 2022). CONCLUSION From the explanation of the article above, it can be concluded that in achieving sustainability in an organization, an organization must be able to provide activities in the form of corporate social responsibility (CSR), which by holding these activities in the company will have an impact on the company's sustainability in the long term because of its support from external parties who are able to support and influence the company's sustainability. The way to implement corporate sustainability is by implementing.

CHAPTER 6 NAVIGATING THE COMPLEXITIES OF INTERNATIONAL TRADE: THEORETICAL FOUNDATIONS, PRACTICAL IMPLICATIONS, ANDPOLICY DEBATE INTRODUCTION In the intricate web of the global economic landscape, international trade theory standsas a guiding beacon, shedding light on the intricate interplay of forces shaping the world's economic future (Muhammad et al., 2023; Obikwelu Ifeanyi John et al., 2023) . Like the threadsof a vast tapestry, it weaves a nuanced understanding of the patterns and intricacies underlyingglobal economic exchanges (Beuret, 2023). The title, "Navigating the Complexities of International Trade: Theoretical Foundations, Practical Implications, and Policy Debates," encapsulates the multifaceted nature of this study (Bris et al., 2021). Just as a navigator steers through uncharted waters, international trade theory guides us through the multifarious dimensions of global trade, elucidating its intricate dynamics (Dharmayanti et al., 2023). The theoretical framework of international trade is an indispensable tool for unravelingthe enigmas of global commerce(Argudo et al., 2023; Dharmayanti et al., 2023). As a guidingcompass, it dissects concepts such as comparative advantage, firstmover advantages, and economies of scale, providing insights into the direction and intensity of international trade (Devlin et al., 2023; M. Li et al., 2023). Through the lens of international trade theory, we embark on a journey to explore the ever-evolving landscape of trade patterns, the pivotal role of early adopters in shaping export dominance, and the far-reaching influence of government policies on the trajectory of international trade (Devlin et al., 2023; Jing, 2023). With this title as our guiding star, we are poised to navigate the intricate maze of international trade, probing the theoretical foundations, practical applications, and the spiriteddebates that define the complex world of global commerce (Agurto et al., 2023; Zhong, 2023).As we delve deeper into this multifaceted exploration, we'll uncover the significance of international trade theories in deciphering the dynamics of global economic interactions (Savinet al., 2023). These theories not only provide us with a framework to comprehend the benefits of international trade, including increased efficiency and specialization, but also prompt us to confront the challenges and tensions that arise in a world where economic nationalism and trade protectionism continue to cast their shadows (Minakir, 2023).

In this journey, we'll confront the intricate and nuanced debates surrounding the role ofgovernments in trade policies (F. S. Chien et al., 2023). While some argue for unrestricted freetrade as a path to economic prosperity, others champion protectionist measures to safeguard domestic industries and employment (Yu & Liu, 2022). The ongoing clash of ideas on the globalstage paints a vivid picture of the complexities inherent in international trade (Kutyauripo et al., 2023). Our title, "Navigating the Complexities of International Trade," thus stands as an invitation to explore the multifaceted landscape of international trade—its theoretical underpinnings, practical implications, and the ongoing policy debates that shape our global economic destiny (Veneziani & Zamparelli, 2022). It is a testament to the enduring relevance andimportance of international trade in an ever-changing world, where the forces of globalizationcontinue to forge new pathways and present fresh challenges (Calvo, 2023). DISCUSSION LO 1. Reasons for international trade. International trade is a rapidly growing legal sector, and the scope of law related to international trade is extensive (Lal et al., 2023; Mardones, 2023). This encompasses various types of trade relationships involving cross-border transactions (Bezpalov et al., 2023). Theserelationships can vary, ranging from simple exchanges like barter, buying and selling goods orcommodities (such as agricultural products, plantations, and the like), to highly complex trading transactions (I. Chien et al., 2023). International trade plays a key role in shaping the global economy by providing significant economic benefits, such as increased production efficiency and specialization (Wassénius et al., 2023). However, it often faces resistance and concerns from parties feeling threatened by imports (Livingstone et al., 2023). The reason is the competition from importedproducts that can disrupt the local industry (Spina et al., 2023). This can result in a decline in domestic production and job loss if the industry cannot compete with imports (Chen et al., 2023). Economic theories, such as the theory of absolute advantage by Adam Smith and the theory of comparative advantage by David Ricardo, provide an essential foundation forunderstanding the benefits of international trade (Bortis, 2023). the theory of absolute advantage asserts that each country possesses advantages in producing certain goods orservices, and trade allows them to leverage those advantages (Aslam et al., 2020). Meanwhile,the theory of comparative advantage indicates that a country can

benefit from trade even if it lacks an absolute advantage in producing any goods (Brondino, 2023). However, while this theory provides a robust perspective on the advantages of international trade, implementing policies that support it is not always straightforward (Lee, 2020). Decisions related to trade policies involve many considerations, including their impact on local industries, employment,and the overall economy (Autor et al., 2023). That's why debates on trade policies are often intense, and many countries implement protectionist policies to shield their domestic industries from foreign competition (Hill, 2023). The international trade involves social, political, and cultural aspects in addition to economic considerations (Kalagy & Braun-Lewensohn, 2023). Decisions about trade often reflect the values, political interests, and preferences of the society in a country (Torkunov & Streltsov, 2023). Therefore, debates and trade policies will continue to be complex and controversial topics at both the national and international levels (Maia Siradze, 2022). Global trade patterns have undergone changes, with many multinational companies or high-tech-based firms now preferring to disseminate their production processes across various developing countries (Nahar et al., 2023). They are not only seeking cheaper labor but also aiming to reduce transportation and communication costs by cutting production chains into specific components (Mikaeil et al., 2021). According to Hill, (2023) various economic theories have been developed to explain why international trade occurs and why countries participate in the production of specific goods. Theories such as David Ricardo's comparative advantage, the Heckscher– Ohlin theory,the product life cycle theory, the new trade theory, and Porter's national competitive advantagetheory all seek to explain why countries engage in international trade and why they focus on the production of particular goods (Fernandes et al., 2023). Several alternative theories have emerged in response to discrepancies in explaining trade patterns (S. Li et al., 2021). For instance, the product life cycle theory emphasizes the role of the product life cycle stages in determining trade patterns (Siriwat & Nijman, 2023). Meanwhile, the new trade theory and Porter's theory of national competitive advantage bring new perspectives on why countries may choose to specialize in the production and export of specific types of goods (Kim, 2021) LO 2. Theory of international trade flows. According to Hill, (2023) Mercantilism is an economic concept that emerged in the 18th century, focusing on the prosperity of the nation. Merchants played a crucial role in society, and cooperation between them and the rulers supported the economy(Deter &

van Hoorn, 2023). Thomas Mun and Philipp Wilhelm von Hornick were influential thinkers in mercantilism, Government trade policies were designed to promote exports and limit imports,with the view that a nation's economic gain came at the expense of other nations in internationaltrade (Betz et al., 2023). Smith argued that every nation possesses an absolute advantage in producing certain goods based on their efficiency (Acharyya & Marjit, 2023). For instance, England excelled in textile production, while France had a comparative advantage in wine production, according to Smith, nations should concentrate on producing goods with absolute advantages and trade themwith goods produced by other nations, for example, England should produce textiles and buy wine from France, and vice versa (Sucandrawati et al., 2023). Smith emphasized that nations shouldn't produce goods that could be obtained more inexpensively from abroad, by specializing in the production of goods with an absolute advantage, both nations would benefitfrom trade (Hill, 2023). That international trade theory explains how countries can utilize their comparative advantages to enhance global trade (Andrianarimanana et al., 2023). In the era of globalization, companies can leverage comparative advantages from various countries to produce goods or services more efficiently, thereby increasing their profitability (Boccara, 2022). However, thistheory also emphasizes the importance of trade policies and protection to ensure that companiesdo not harm other nations (Franco et al., 2023). It prioritizes absolute advantage, stating that acountry gains an absolute advantage by being able to produce goods at a lower cost than othercountries (Bampaou et al., 2023). According to Hill, (2023) that David Ricardo developed the theory of international trade, building upon Adam Smith's ideas about comparative advantage. Ricardo explained thateven if one country has an absolute advantage in producing all goods, international trade can still be beneficial (Qi et al., 2023). According to Ricardo's theory of comparative advantage, acountry should focus on producing the most efficient goods and purchase less efficient goods from another country, even if the country can produce those goods more efficiently itself (Rahmat Akbar et al., 2023). This illustrates that international trade can provide benefits, eventhough it may seem counterintuitive. Ricardo explained this concept with a simple example (Deka, 2023). For instance, the availability of natural resources such as iron, gold, and copper in a country is an unchangeable factor(Wang & Yan, 2023). If the domestic currency depreciates, exported goods become cheaper, potentially boosting exports (Bonato et al.,

2023). Thirdly, the inflation rate can impact comparative advantage, where inflation may make exported goodsmore expensive and imported goods cheaper (Arlt, 2023). Lastly, trade barriers such as subsidies and taxes imposed by the government can create artificial comparative advantages, subsidies can enhance the competitiveness of exports, while tariffs can prevent imports (Klotz & Sharma, 2023). LO 3. Economists argue that engaging in unrestricted free trade can enhance the economic well-being of participating countries. The theory of comparative advantage posits that goods with definite utility also possessexchange value, that this theory states that the exchange of goods that are still valid as long asthe goods can be used can be exchanged (Scheufele & Pascoe, 2023). International trade theory discusses the mechanisms and benefits of global trade, and the international trade policy talks about protectionism and the reasons behind trade restrictions (Piekutowska & Konopka, 2023). The goal of international trade is to address imbalances caused by government policies, whetherin the form of tariffs or non-tariff measures (Saputra et al., 2023). The imposition of tariffs as a form of taxation increases trade costs, leading to higher prices for imported goods in the exporting country, a decline in export prices, and a reduction in trade volume (Hidalgo et al., 2023). A country can benefit from international trade by choosing to specialize in producing and exporting goods in which they have a relative advantage in production efficiency (Patalas-Maliszewska et al., 2023). Simply put, a focus on producing and exporting goods with relative advantages will continue to provide benefits to trade, reflecting relative efficiency in the production process (Gala et al., 2018). By exploiting these relative advantages, countries can increase economic prosperity through active participation in international (Mishra & Alavi, 2023). According to Hill, (2023) simple comparative advantage theory states that free trade can bring two types of dynamic advantages to a country. According to Hill, (2023) First, opening the economy to trade can increase the supply of resources by supplying labor and capital from abroad. An example is the capital investment of western companies in Eastern European countries after 1990 (Hill, 2023). According to Hill, (2023) secondly, unrestricted free trade has the potential to enhancethe utilization of a country's resources by promoting efficiency. This efficiency may stem fromfactors like the broadening of the overall market for domestic firms, the adoption of superior foreign technologies, and the competitive pressure from international counterparts, driving domestic producers to improve their efficiency.

According to Hill, (2023) dynamic increases in the supply of resources and the efficiency of use of these resources can cause a country's PPF (Production Possibility Frontier) to shift outward, resulting in economic growth. According to Hill, (2023) the dark side of the free trade theory discovered by Ricardo is that ituses two products and two countries. According to Hill, (2023) the dark side of the free trade theory discovered by Ricardo is that it uses two products and two countries. According to Hill, (2023) while endorsing free trade, Paul Samuelson points out that, under specific circumstances, dynamic progress might yield less favorable outcomes. Nevertheless, overall, there is robust support for free trade due to its potential dynamic benefits that can spur economic growth. (Hill, 2023). According to Hill, (2023) Paul Samuelson criticizes free trade theory in the context of trade relations between the United States (US) and China. According to Hill, (2023) Samuelsonnotes that when the US entered into a free trade agreement with China, thereby rapidly increasing China's productivity, there were dynamic gains in the efficiency of resource use in poorer countries. However, according to Samuelson's model, the lower prices of goodsimported from China may not be enough to generate net gains for the US if the dynamic impactof free trade is a decline in the real wage rate in the US (Hill, 2023). According to Hill, (2023) some other economists dismissed Samuelson's concerns,stating that developing countries are unlikely to reach the same situation as Samuelson's modelbecause increasing the skill level of the workforce takes time. According to Hill, (2023)however, this contradicts data showing that several Asian countries have rapidly improved theireducation systems. Although there is debate about the impact of free trade, some consider thatin the long run, free trade remains profitable despite significant adjustment costs (Hill, 2023). As a result, consumers benefit from access to products that were not previously available and lower prices for products that could not be produced efficiently withoutinternational trade (Saghaian et al., 2023). In other words, trade opens up opportunities formutual benefit, increases the variety of goods available to consumers, and lowers overallproduction costs (Egeland-Eriksen et al., 2023). This advantage refers to the economic andstrategic benefits gained by a company or country that enters an industry early (Gómez-Reinoet al., 2023) . When substantial economies of scale are present, early entrants can attain cost dvantages that prove challenging for new competitors to replicate (Arai & Morimoto, 2023). According to Hill, (2023) The new trade theory, products characterized by

significant economies of scale and substantial global demand may witness dominance in exports by the industry's first movers. Being the first to achieve economies of scale can confer an advantage,as illustrated by the commercial aerospace sector. In this industry, the development of new jetaircraft is closely linked to the benefits of being a first mover. (Zarbakhshnia et al., 2023). Airbus, as the first company to develop the A380 superjumbo jet, faced huge development costs (Eisenreich & Füller, 2023). To cover those costs, they need to sell a certain number of planes, like the achieving economies of scale earlier, Airbus has a first-mover advantage in thesuperjumbo aircraft category (Shehata et al., 2023). Due to its status as the first mover in attaining economies of scale, the European Union,particularly through the Airbus company, has the potential to dominate exports of superjumbojets (Gómez-Reino et al., 2023). Potential rivals, like Boeing, might face challenges in reaching comparable economies of scale, potentially leading to their sidelining (Gala et al., 2018; Mishra& Alavi, 2023). The challenging nature of matching the first-mover advantage in this scenario positions the European Union as the frontrunner in exporting superjumbo jet aircraft. According to Hill, (2023) however, keep in mind that certain markets, such as the super-jumbo market, may not be large enough to support a single manufacturer, as was the case withthe A380 which was discontinued in 2021 due to weak demand. In essence, first mover advantages based on economies of scale can play a key role in determining global trade patterns(Hill, 2023). The new trade theory carries significant implications, one being that countries can reaptrade benefits even when they don't exhibit differences in terms of resources or technology (Jani et al., 2023). Trade allows countries to specialize in the production of specific goods, leading to economies of scale, reduced production costs, and a broader array of products accessible to consumers (Hill, 2023). According to Hill, (2023) Secondly, the theory underscores that a country can lead in exporting a particular good solely due to the fortune of having the first company to produce that good. According to Hill, (2023) The advantages of being a first mover, particularly those stemming from economies of scale, can establish barriers that impede the entry of new competitors, leading to dominance in global trade. The new trade theory recognizes economiesof scale as a crucial source of comparative advantage, with the firstmover advantage in attaining such economies playing a pivotal role in shaping trade patterns (Hidalgo et al., 2023).This is different from the Heckscher–Ohlin theory which emphasizes production factors (Galaet al., 2018).

Empirical studies validate the predictions of this theory, indicating that trade has the potential to enhance production specialization, expand the range of available products, and reduce average prices (Tassone et al., 2023). According to Hill, (2023) however, a controversialimplication is the view on government intervention and strategic trade policy. According to Hill, (2023) some new trade theorists argue that government intervention, such as subsidies and R&D support, can increase domestic firms' chances of becoming first movers in emerging industries (Song et al., 2023). This prompts consideration of proactive trade policies that deviate from conventional free trade recommendations. Essentially, the new trade theory offers a more nuanced comprehension of international trade dynamics, incorporating elements like luck, innovation, and government intervention as influential factors in shaping global trade patterns (Shehata et al., 2023). LO 4. The arguments put forth by those who believe that the government can play aproactive role in enhancing national competitiveness in specific industries are as follows.According to Hill, (2023) In this argument, the researcher utilizes the Diamond Porter Model, which is one of the methods that can be used to understand the factors influencing thesuccess of an industry within a country and how it relates to international trade. However, toassess the relevance of this theory in the real world context, a more in-depth empirical researchis needed (Jani et al., 2023). The Porter Diamond model is one of the useful frameworks foranalyzing the factors that influence the performance of industries at the national level and howthey relate to international trade (Manggala et al., 2023). According to Hill, (2023) This theoryfocuses on four key factors considered crucial in shaping the competitiveness of industries, namely, supporting factors, domestic demand conditions, related and supporting industries, and domestic rivalry. This model has provided valuable insights in the effort to understand why some industries succeed internationally while others may not (Sun et al., 2023). The model has been utilized by some researchers, however, it should be emphasized that, to date, this model has not undergone in-depth empirical testing across various industriesand countries (Rapina et al., 2023). Although there are some examples where the factors introduced by Porter appear to be relevant, to ascertain the extent to which this model applies in various real-world situations, more extensive and comprehensive empirical research is needed (Murtaza et al., 2023). Critiques of the Porter

Diamond Model have also been put forward (van Zyl et al., 2023). Some researchers argue that this theory tends to be overly descriptive and may not always provide an adequate picture of the complexity of today's globalindustries (Hoppe et al., 2023). Furthermore, in the era of globalization, factors like global supply chains and crossborder collaborations are becoming increasingly important, so this theory may need to be adapted or combined with other approaches to offer a more comprehensive understanding (Hoppe et al., 2023). The Porter Diamond model remains one of the essential tools in industry and international trade analysis (Wei, 2023). However, for this theory to remain relevant in the realworld, more in-depth empirical research and adjustments to the ever-changing dynamics of global trade are needed (Rampon Neto & Barcellos, 2023). This will help us better understand therole of factors influencing industry performance at the national and international levels, therefore, it is necessary to review and refine this model to remain relevant in the face of economic, technological, and policy changes affecting industrial competitiveness (Guseynova,2022). LO 5. The significant implications of international trade theory apply to practical management. In understanding the benefits of international trade through theories proposed by AdamSmith, David Ricardo, and Heckscher-Ohlin, these theories specifically identify tangiblebenefits of international trade, namely the gains from trade (Duodu & Mpuure, 2023). Although,in essence, this concept seems sensible - that a country can acquire goods it cannot produce itself through trade - these theories demonstrate that international trade is beneficial not only in such a situation but also when a country can produce all goods efficiently (Duodu & Mpuure,2023). If a country like Iceland, for example, can produce oranges at a higher cost compared to another country, but can produce fish at a lower cost, it would be beneficial for Iceland to trade some of its fish for oranges from the more efficient orange-producing country (Hassan Malik et al., 2023). Therefore, international trade allows Iceland to enrich its food supply withoranges while still focusing on the more efficient production of fish (Xue et al., 2023). However, these theories often conflict with the nationalist sentiments that still exist in many countries. For example, in the United States, there is a tendency to support the purchaseof domestically-made products to bolster domestic employment and protect domestic industries(Brakman et al., 2023). Yet, international trade theories assert that

import restrictions often benefit domestic producers more than domestic consumers as a whole, as such restrictions canlead to increased costs for consumers due to a lack of competition and product choices (Luo etal., 2023; Rapina et al., 2023). The policies also acknowledge that the government can implement export restrictions to bolster domestic output. This strategy aims to improve the efficiency of domestic industries without causing substantial disruptions to foreign markets, especially when accompanied by welldesigned and targeted taxation measures. (Wei, 2023). International trade theories help us understand why international trade, even for products that can be domestically produced, can be beneficial for a country as a whole . Although this perspective may not always be accepted by everyone, especially those holding nationalist sentiments or protecting domestic industries, these theories provide an intellectual foundation to support unrestricted free trade in the context of today's economic globalization (Lal et al., 2023; Lee, 2020). With this framework of thought, we can design smarter trade policies that focus on common interests to enhance global prosperity and economic growth (Veneziani & Zamparelli, 2022). International trade has a significant impact on a country's economic growth. If a country exports more than it imports, its national income increases, which can potentially contribute positively to economic growth (Veneziani & Zamparelli, 2022).The benefits of international trade include increased national income, foreign exchange reserves, capital inflows, and improved job opportunities (Savin et al., 2023). CONCLUSION International trade plays a crucial role in shaping the global economy and can offer significant economic benefits. These benefits include increased production efficiency, specialization, and economic growth. The theoretical foundations underpinning our understanding of the benefits of international trade are the theories of absolute advantage and comparative advantage, although their implementation is often complex and involves many considerations, including the impact on local industries and employment. The debate over the government's role in regulating international trade involves two main viewpoints: those supporting unhindered free trade and those advocating protectionist policies. Supporters of free trade argue that unrestricted international trade can enhance the economic well-being of participating countries, resulting in dynamic effects, economic growth,increased product variety, and lower costs. However, there are also criticisms and concerns about adverse effects, particularly in terms of jobs and

wages. New trade theories, particularly the Porter Diamond model, provide deeper insightsintothe factors influencing the success of industries at the national level and their relationship withinternational trade. Industry success often depends on factors such as supporting factors, domestic demand, the presence of related industries, and domestic competition. This perspective, the government can play an active role in enhancing national competitiveness by creating conditions that support the development of specific industries. Nonetheless, complex debates and considerations persist. Some view excessive government intervention or protectionist policies as hindrances to international trade and economic growth, while others see the government's role as essential for protecting domestic industries and jobs. Therefore, issues related to international trade remain a complex and controversial topic at both the national and international levels.

CHAPTER 7 GLOBAL TRADE DYNAMICS: NAVIGATING GOVERNMENT POLICIES FOR INTERNATIONAL SUCCESS Government policy and international trade are two pillars upon which the modern global economic system stands (Ehimen et al., 2023; Jatmiko et al., 2023; Makarov et al., 2023). These two intertwined concepts hold the potentialto shape the prosperity and well-being of nations, individuals, and businesses worldwide (Ardelt et al., 2023; Baldwin et al., 2023; Gardiner et al., 2023). As we delve into the complexities and dynamics of these subjects, it becomesevident that understanding the intricate relationships between government policiesand international trade is vital in the contemporary context (DeAngelo et al., 2023; Mogavero et al., 2023; Nociti & Romozzi, 2023). This extensive exploration will take us through the historical evolution of these areas, the pivotal role governments play in shaping trade dynamics, the various trade policies implemented globally, the implications of these policies on domestic and global economies, and the ongoing debates and challenges surroundingthem (Allen, 2022). Government policies serve as the rulebook for a nation's economic game, influencing the movement of goods, services, and capital across borders (Huerta-Soto et al., 2023; Nociti & Romozzi, 2023; Obisesan, 2023). They encompass a wide array of regulations, from tax policies and subsidies to trade agreements and labor laws. International trade, on the other hand, transcends geographical boundaries, bringing nations closer through the exchange of products and services (Adedoyin et al., 2023; J. Kim, 2023; Obisesan, 2023). In today's interconnected world, global trade is a central driver of economic growth and development (Mahran, 2023; Mohamed Kamal & AboElsoud, 2023; Y. Zhang & Cheng, 2023). However, the relationship between government policies and international trade is far from straightforward; it is marked by a delicate balance of power, politics, and economics. (Bhaskar, 2022) To embark on our comprehensive journey, we must begin by tracing the historical development of government policies and international trade (J. Li, Burgess, et al., 2023; Sari et al., 2023; Traianou, 2023). This historical context is crucial to grasp the evolution of their interplay and the ways in which they have shaped our modern global economy (Adedoyin et al., 2023;Kim, 2023). Understanding the historical context will also help us appreciate the significance of contemporary debates and policy decisions. (Cobham, 2023) The relationship between government policy and international trade has deep historical roots (Baldwin et al., 2023; Gardiner et al., 2023; Heatwole Shank, 2022). Trade between distant civilizations can be traced back to ancienttimes when the Silk Road connected the East and West, and explorers suchas Marco Polo ventured into new

territories, fostering exchanges of goods and ideas (Buck et al., 2023; Sandgren et al., 2023; Xie et al., 2023). The policies of empires and kingdoms in these eras played a significant role in shaping the dynamics of (Sandgren et al., 2023; Switek et al., 2023). For instance, the British Empire's mercantilist policies, which aimed to accumulate wealth through a favorable balance of trade, greatly influenced global commerce in the 16th and 17th centuries (Gruber et al., 2023; I. Islam etal., 2023; Wahab et al., 2023). The Industrial Revolution in the 18th century ushered in an era of rapid technological advancements, leading to an increased demand for raw materials and new markets for manufactured goods (K. Ali et al., 2023; Gruber et al., 2023; Reineholm et al., 2023). The policies of nation-states evolved to supporttheir economic interests, culminating in the expansion of colonial empires (IFSB Report, 2021; Livingstone et al., 2023; Zheldibayeva, 2023). This period also saw the development of trade theories, such as the classical theories of absolute and comparative advantage, as articulated by Adam Smith and David Ricardo, respectively (Livingstone et al., 2023; Turnhout et al., 2021). These theories laid the intellectual foundations for understanding the benefits of international trade (Buck et al., 2023; Rani, 2023; Sandgren et al., 2023). The 19th and early 20th centuries marked the peak of imperialism and colonialism (Bianchi & Cordella, 2023; Chu et al., 2023; Homayouni et al., 2023). European powers extended their dominions, often exploiting the resourcesand labor of colonized regions (Baldwin et al., 2023; Ehimen et al., 2023; Nociti & Romozzi, 2023). The policies governing international trade were heavily influenced by imperialist interests, protectionism, and the quest for economic dominance (Buck et al., 2023; Heatwole Shank, 2022; I. Islam etal., 2023). World Wars I and II disrupted global trade and prompted the need for international institutions to foster peace and cooperation. (Amaglobeli, 2022) The Bretton Woods Conference of 1944 established the International Monetary Fund (IMF), the World Bank, and the precursor to the World TradeOrganization (WTO), then known as the General Agreement on Tariffs and Trade (GATT) (Buck et al., 2023; Heatwole Shank, 2022; Mullin & Hansen, 2023). These institutions were founded with the aim of creating a more stable international monetary system and promoting trade liberalization, reflecting apost-war consensus that open trade was essential for global economic growth and peace. (Amaglobeli, 2022) The post-World War II era witnessed the birth of the modern global trading system, with the GATT serving as a forum for negotiating tradeagreements and reducing tariffs (K. Ali et al., 2023; Charfeddine & Umlai, 2023; Xie et al., 2023). It was succeeded by the WTO in 1995, which assumed a more comprehensive role in regulating international trade (Switek et al., 2023). The General Agreement on Trade in Services

(GATS) and the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS)were introduced, expanding the scope of trade regulation to services and intellectual property. (Svartzman, 2022) The end of the Cold War in the early 1990s marked a new era of globalization, as countries like China and India embraced market-oriented policies and became significant players in the global economy (Babaev Isa, 2023; Rani, 2023; S. Yuan, 2023). The proliferation of regional trade agreements, like the North American Free Trade Agreement (NAFTA) and the European Union (EU), further transformed the landscape of international trade (Chu et al., 2023; Homayouni et al., 2023). These agreements aimed to reduce trade barriers among member states, but they also introduced complexities and debates over sovereignty and economic impact. (Ari, 2022)

As we transition into the 21st century, the digital revolution and advancements in transportation have accelerated the pace of globalization (Livingstone et al., 2023; Raihan, 2023b; Zelenev, 2023). E-commerce and global supply chains have redefined the way goods and services move across borders (Kazachenok et al., 2023; Kiki et al., 2023). Governments are grappling with the challenges of regulating a digital economy, addressing issueslike data privacy, cybersecurity, and intellectual property protection in an increasingly interconnected world. (Soderberg, 2022) In this historical context, we can see the continuous interplay between government policies and international trade, as nations have adapted their approaches to reflect changing economic landscapes, technological advances, and geopolitical shifts (Feng et al., 2023; Kwaw-Nimeson & Tian, 2023; I. Maqbool et al., 2023). Understanding this historical evolution is vital for comprehending the complexities of contemporary government policies and their impact on international trade. (Allen, 2022) The relationship between government policies and international trade ismultifaceted (Fan et al., 2023; Fu et al., 2023; Le, 2023). Governments playa central role in shaping trade dynamics through a range of policy instruments (Brondino et al., 2023; Nts’upa et al., 2023; T. H. Wang et al., 2023). These instruments include tariffs, trade agreements, non-tariff barriers, subsidies, exchange rate policies, and regulations (Calabrese & Tang, 2023;Vargas-Hernandez et al., 2023). Let's delve into some of the key aspects of this relationship (Cobham, 2023): Tariffs and Trade Barriers: Tariffs, or import taxes, have historically beena tool used by governments to protect domestic industries. While they can provide short-term advantages to specific industries, they often leadto higher prices for consumers and can provoke trade disputes. The reduction of tariffs has been a central goal of international trade agreements, leading to the concept of "free trade." (Bajraktari et al., 2023; Dhingra et al., 2023; Klotz & Sharma, 2023) Trade Agreements: International trade agreements are negotiated between governments to facilitate and regulate trade. They can vary in scope, from bilateral agreements between two countries to regional agreements encompassing multiple nations, like the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) or the EU's single market. Such agreements define the rules of trade, including tariff reductions, intellectual property protection, and disputeresolution mechanisms (Adam et al., 2023; Dür et al., 2023; El-Sahli, 2023). Non-Tariff Barriers: Non-tariff barriers, such as quotas, licensing requirements, and technical standards, can have a significant impact on trade flows. These barriers are often used to protect domestic industries and ensure safety and quality standards but

can also be abused for protectionist purposes (Felbermayr et al., 2023; Topornin et al., 2023; Turkson et al., 2023). Subsidies: Governments may provide subsidies to domestic industries to bolster their competitiveness. While subsidies can be essential for promoting certain sectors, they can distort international trade by giving domestic industries an unfair advantage (S. Ahmad et al., 2023; Lennan & Switzer, 2023; K. Wang et al., 2023). Exchange Rate Policies: Exchange rates play a crucial role in international trade. Governments can influence exchange rates through various means, including interventions in currency markets. These policiesimpact a nation's trade balance and can be a source of contention among trading partners (Andini, 2023; Hamano & Pappadà, 2023; C. C. Lee & Wen, 2023). Regulations and Standards: Domestic regulations and standards can act as trade barriers when they differ significantly from those of trading partners. Harmonizing regulations is a complex but necessary process to facilitate international trade, particularly in industries like food safety,pharmaceuticals, and automotive manufacturing (Okamura & Kano, 2023;X. Sun et al., 2023; Y. Wang et al., 2023). The interplay of these policy instruments can shape a country's trade balance, influence the competitiveness of its industries, and impact the welfare of its citizens (Adedoyin et al., 2023; Mahran, 2023; Mohamed Kamal & AboElsoud, 2023). Government policies can both promote and hinder international trade, and understanding the motivations and consequences of thesepolicies is vital for economists, policymakers, and business leaders. (Wray, 2023) Government policies in the realm of international trade have far-reaching implications for economies, businesses, and individuals (Adedoyin et al., 2023; Nociti & Romozzi, 2023; Obisesan, 2023). The effects can be both positive and negative, and the balance depends on a myriad of factors, including the specific policy, the economic context, and the global trade environment (Z. Chen, 2023; Lim et al., 2023; Smith et al., 2022). Let's explore some ofthe key implications (Arslanalp, 2022): Economic Growth: Trade liberalization, often facilitated through governmentpolicies, has the potential to stimulate economic growth. By allowing businesses to access larger markets, trade can lead to increased production, investment, and job creation. Furthermore, specialization drivenby comparative advantage can enhance overall economic efficiency (Acheampong & Opoku, 2023; Chinoda & Kapingura, 2023; Varvarigos, 2023). Consumer Welfare: Lower trade barriers tend to benefit consumers by providing access to a wider variety of products at lower prices. Competition from foreign producers can help keep prices in check and improve the quality of goods and services (Dubé & Misra, 2023; Joo, 2023; Mills et al., 2023).

Business Competitiveness: Export-oriented businesses can thrive whengovernment policies support international trade. These policies might include subsidies, export financing, and trade promotion. Additionally, access to global supply chains can reduce production costs and enhance competitiveness (Minaya et al., 2023; Sarwar et al., 2023; Untari et al.,2023). Income Distribution: While trade can boost overall economic growth, its benefits are not evenly distributed. Certain industries may suffer joblosses or declining competitiveness when exposed to international competition. Government policies must address issues of income inequality and job displacement (Fitrawaty et al., 2023; Kappes, 2023; Khamnei et al., 2023).

Trade Deficits and Surpluses: Government policies, particularly those related to exchange rates and tariffs, can influence a nation's tradebalance. Persistent trade deficits or surpluses can have macroeconomic consequences, affecting a country's currency value and its international debt (Aliber, 2023; W. Kim, 2023; Schweinberger, 2023). Innovation and Intellectual Property: Government policies related to intellectual property protection can impact innovation and technology transfer. Strong intellectual property rights can encourage research and development, while weak protection can lead to counterfeiting and the unauthorized use of patented technologies (Arunnima et al., 2023; de Beer et al., 2023; Siltaloppi & Ballardini, 2023). Environmental and Social Standards: Governments may implement policiesto address environmental concerns and labor rights in international trade. Trade agreements often include provisions related to environmentalprotection and labor standards, aiming to prevent a race to the bottom in terms of regulation (Blind et al., 2023; GutiérrezPonce, 2023; Iturralde, 2023). Geopolitical Considerations: International trade is closely intertwined with geopolitics. Government policies can be used as a tool of diplomacy orcoercion, and trade relations can be affected by political disputes, sanctions, and national security concerns (Cai & Efstathopoulos, 2023; Quaglia & Verdun, 2023; Sovacool et al., 2023). Global Supply Chains: The fragmentation of production processes across borders, known as global supply chains, has become a defining feature of contemporary trade. Government policies can impact the integration ofa country into these supply chains, influencing its economic prospects (Hertzel et al., 2023; Tiwari et al., 2023; X. Xu et al., 2023). These implications demonstrate the profound and multifaceted impact that government policies related to international trade can have on economies(Soyland et al., 2023). Policymakers must carefully consider these effects when making decisions about trade agreements, tariffs, and other trade- related measures (Bhaskar, 2022).The realm of government policies and international trade is far from static ( et al., 2022; Jatmiko et al., 2023). It is characterized by ongoing debates and challenges that reflect the evolving nature of the global economy (Babaev Isa, 2023; Jatmiko et al., 2023). These debates revolve around a rangeof issues, from trade protectionism and globalization to digital trade and the role of international institutions (Bhaskar, 2022) . Trade Protectionism vs. Free Trade: The tension between protectionism and free trade has been a longstanding debate. Protectionist measures, such as tariffs and subsidies, are often implemented to shield domestic industries from foreign competition. This debate centers on whether protectionism is a valid means of safeguarding national

interests or whether free trade ultimately benefits all parties involved (Honeker, 2023; Macdonald, 2023; Moon, 2023) Globalization and Its Discontents: Globalization has been a powerful forcein reshaping the world economy, but it has also generated discontent among segments of the population. Critics argue that globalization has led to job displacement, income inequality, and the erosion of national sovereignty. Advocates, on the other hand, emphasize its role in economic growth and poverty reduction (Agunyai & Amusan, 2023; EastAsia and the Pacific, 2023; Samuels, 2023). Digital Trade and E-commerce: The digital revolution has brought forth new challenges in the realm of international trade. Issues such as data privacy, cybersecurity, and crossborder taxation have become central concerns. Governments are grappling with how to regulate digital trade while allowing innovation to flourish (Fang, 2023; Y. Yang et al., 2023) Trade and the Environment: Concerns about the environmental impact of trade have grown, leading to debates about how to reconcile economic growth with sustainability. Trade policies must consider environmental standards, resource conservation, and carbon emissions, often leading to tensions between trade and environmental goals (A. Khan et al., 2023; Khan & Safdar, 2023; Padhan & Bhat, 2023). Role of International Institutions: The effectiveness of international institutions like the WTO is a subject of debate. Some argue that theseorganizations are essential for maintaining a rules-based global trading system, while others contend that they need reform to address contemporary challenges (Bhatt et al., 2023; Houran, 2023; Ryazantsev& Khramova, 2023). Trade and National Security: National security considerations increasingly intersect with trade policy. Export controls, sanctions, and trade restrictions may be imposed to address national security concerns, but these measures can also impact global trade flows (Garibaldi & Deane, 2023; S. Y. Peng, 2023; W. Zhou et al., 2023). Regional vs. Multilateral Trade Agreements: The proliferation of regional trade agreements has raised questions about their impact on the multilateral trading system. Debates focus on whether regional agreementsfragment the global trade landscape or serve as building blocks for broader multilateral agreements (Yang et al., 2023). These ongoing debates and challenges underscore the complex and dynamic nature of government policies and international trade. As the world continues to evolve, so do the issues and considerations thatshape trade policies and their implications (Quaglia & Verdun, 2023; Sovacool et al., 2023; Tiwari et al., 2023). Government policies and international trade are fundamental components ofthe modern global economic system. They are inexorably intertwined,with government actions

playing a pivotal role in shaping the dynamics of international trade. This extensive exploration of their relationship,spanning historical evolution, policy instruments, economic implications,and contemporary debates and challenges, underscores the significance of understanding these topics in our interconnected world (de Beer et al., 2023; W. Kim, 2023; Siltaloppi & Ballardini, 2023). As we journey through this vast terrain, we find that government policies have evolved over centuries, adapting to changes in economic, technological, and geopolitical landscapes. From ancient trade routes to the modern digital economy, the interplay between policies and tradehas left an indelible mark on human history. The development of LITERATURE REVIEW

international institutions, such as the WTO and regional trade agreements, reflects a collective recognition of the benefits of open trade and cooperation (Chinoda & Kapingura, 2023; Minaya et al., 2023; Untari et al., 2023). However, government policies related to international trade are not without their controversies and complexities (Frias et al., 2023; Jain et al., 2023;Wahab et al., 2023). The ongoing debates between protectionism and freetrade, the challenges posed by globalization, digital trade, and environmental concerns, and the question of the role of international institutions all highlight the intricacies of this field (Chu et al., 2023; Homayouni et al., 2023). Thesedebates and challenges demand thoughtful analysis and consideration, as they have profound implications for economies, businesses, and individuals (Allen, 2022). In our journey to comprehend government policies and international trade, we will explore these historical roots, the intricate relationships between policy instruments and trade dynamics, the profound implications on economies, and the contemporary debates and challenges that define the landscape (Bushell, 2023; Kazachenok et al., 2023; I. Maqbool et al., 2023). By delving deepinto these topics, we seek to gain a comprehensive understanding of theforces shaping the world's economic and trade order. (Ari, 2022) As we continue, we will explore each of these aspects in greater depth, shedding light on the intricacies, controversies, and implications that define government policies and international trade (Almakayeel, 2023; Fehl, 2023; Raihan, 2023b). In doing so, we equip ourselves with the knowledge needed to navigate the complexities of the global economy and contribute to informeddiscussions and policy decisions in this ever-evolving field.. (Arslanalp, 2022) LO 7-1 The Instrument used by the government to influence international trade flows International trade is the exchange of goods and services across national borders, and it plays a fundamental role in the global economy (Bris et al., 2021). Governments actively participate in shaping their country's international trade flows to protect their industries, enhance economic growth, and foster diplomatic relations (Hashim et al., 2023; Hosono et al., 2023; Su, Yuan, et al., 2023). These efforts involve the use of various instruments, which are policy tools designed to influence the quantity, quality, and direction of international trade (Hashim et al., 2023; Stoll et al., 2022; Su, Yuan, et al., 2023). This comprehensive discussion will explore the multitude of instruments employed by governments, delving into their economic and political implications(Desmedt et al., 2023; Zaidi et al., 2023). From tariffs and subsidies to non-

tariff barriers and trade agreements, we will dissect each instrument's mechanics and impact on international trade. (Ari, 2022) Tariffs are one of the most common and direct instruments used by governments to influence international trade flows ( Martínez-Martínez et al.,2023; Tudorache, 2023). They are taxes imposed on imported goods, making them more expensive for consumers and less competitive with domestic products (Febriana et al., 2023; Martínez-Martínez et al., 2023; Tudorache, 2023). Tariffs serve several purposes, including revenue generation, protection of domestic industries, and negotiation leverage in international trade agreements (Doix, 2021; Soukal, 2021). This section will explore the various types of tariffs, their effects on trade flows, and the strategies employed by governments in setting tariff rates. (Alami, 2022) Subsidies represent the opposite end of the spectrum compared to tariffs (Ferrari & Ossa, 2023; Krolage, 2023; Y. Li, Liang, et al., 2023). Instead of making imports more expensive, governments provide financial support todomestic industries to make them more competitive in international markets (Abzhalelova et al., 2023; Garner, 2023; Ning & Xydis, 2023). This approach can lead to distortions in trade patterns, as domestic products become artificially cheaper (Hu et al., 2023; Mingyi et al., 2023). We will examinethe different forms of subsidies and their implications for international trade,as well as the controversies and challenges associated with their use.(Arslanalp,2022) Nontariff barriers encompass a wide range of policy tools that restrict imports without employing traditional tariffs (Athanasiadis et al., 2023; Sediqiet al., 2022). These include quotas, licensing requirements, technical standards, and sanitary regulations (Prodanchuk et al., 2023; Prysthon et al., 2023). Nontariff barriers can be employed for various reasons, such as ensuring product safety or protecting domestic industries (Dawar, 2022; F. Yuan, 2022). This section will provide an in-depth analysis of non-tariff barriers, exploring their impacts on trade flows and the intricacies of implementing and monitoring them. (Amaglobeli, 2022) Trade agreements are crucial instruments for shaping international trade flows (Alhassan & Payaslioğlu, 2023; Barnett & Nam, 2023; Larionova & Shelepov, 2023). They establish the rules and conditions governing trade relationships between countries (Pujalte et al., 2023; Pyurbeeva et al., 2023; Zeitoun et al., 2023). Governments negotiate these agreements to reduce trade barriers, foster economic integration, and promote cooperation (Asal et al., 2023; Iacobucci, 2023; Karlén, 2023). We will delve into the different typesof trade agreements, including bilateral and multilateral ones, and assess their impacts on international trade and economic growth. (Ari, 2022) The value of a country's currency plays a significant role in internationaltrade. Governments can influence trade flows by manipulating their exchange rates through

various means, including currency devaluation or pegging to another currency (Asal et al., 2023; Iacobucci, 2023; Nasira Banu & Cholakkal, 2023). This section will examine the motivations behind exchange rate policies, their effects on trade balances, and the challenges andcontroversies associated with currency manipulation. (Arslanalp, 2022)To encourage exports and influence trade flows positively, governments often engage in trade promotion activities (Boutorat & Franssen, 2023; Chaiet al., 2023; Y. Li, Li, et al., 2023). These initiatives encompass a widerange of activities, from trade missions and export financing to marketing and information dissemination (Shi et al., 2023; Tian & Zhao, 2023; T. Y. Wang & Park, 2023). We will explore the various strategies employed by governments to boost exports and the economic benefits and challenges ofsuch initiatives. (Ari, 2022) In contrast to trade promotion, governments also utilize economic sanctions as a means to disrupt international trade with certain countries or entities (C. Jin et al., 2023; Tang et al., 2023; Z. Wang et al., 2023) . Sanctions can take the form of trade embargoes, financial restrictions, or asset freezes (McDaniel & Ghei, 2022). This section will explore the motivations behind economic sanctions, their legal and ethical implications, and their effectiveness in shaping trade flows. (Cobham, 2023) Intellectual property rights (IPR) protection is another critical aspect of international trade policy (Broschek, 2023; Jaursch, 2023; Jones, 2023). Governments implement and enforce IPR laws to safeguard the rights of their domestic industries and encourage innovation (Ibrahim, 2023; Sekwati & Dagume, 2023; Sugiharto & Syaifullah, 2023). This section will discuss therole of IPR in international trade, the challenges of enforcement, and the impact on trade flows, particularly in sectors such as pharmaceuticals andtechnology. Trade and environmental or labor standards are often intertwined in international agreements. Governments can use these standards to influence tradeflows, ensuring that products meet certain environmental or labor criteria. This section will explore the motivations for incorporating these standards into trade agreements and their impact on trade dynamics, sustainable development, and social responsibility. (Alami, 2022) No discussion on government instruments in international trade would be complete without addressing the challenges and controversies surrounding these tools (A. S. -, 2023; Leal et al., 2014; Nzama et al., 2023). This section will tackle issues such as protectionism, trade wars, and their impact onglobal trade stability. It will also address the evolving nature of international trade and how governments are adapting their policies to address new challenges, such as e-commerce and digital trade. (Arslanalp, 2022) To provide a real-world perspective on the use of government instruments in international trade, we will examine case studies of countries that have employed various strategies

to influence their trade flows. These case studies will offer insights into the effectiveness and consequences of different policy choices. (Ari, 2022) LO 7-2 why the governement sometimes intervene in international trade International trade has been a fundamental aspect of economic development and globalization for centuries (M. Ahmad et al., 2023; Chase- Dunn et al., 2023; David Wasike, 2023). It has enabled nations to exchange goods and services, fostering economic growth, and interconnectivity among nations (David Wasike, 2023; Sansika et al., 2023; Shandra et al., 2023). However, the extent to which governments intervene in international trade varies considerably from one country to another and from one period to the next (Bressan et al., 2023; Cox, 2023; Passeron et al., 2023). This intervention can be driven by a multitude of reasons, reflecting the complex web of economic, political, and social factors at play in the international arena. (Amaglobeli, 2022) To understand the reasons behind government intervention in international trade, we must first examine the historical context in which these interventionshave occurred (Marrow, 2023; Muhajir, 2023; Sasi, 2023). Throughout history, governments have employed various trade policies to protect their domesticindustries, boost their economic growth, and promote national interests (Alemu; et al., 2022; Marrow, 2023). These policies have evolved in response tochanging circumstances and have been influenced by the economic theories of their times. (Ari, 2022) 1. Mercantilism: The early modern period was marked by the dominance of mercantilism, a set of economic ideas that encouraged government intervention in trade. Mercantilist policies sought to accumulate gold andsilver reserves by exporting more than importing, which often led to trade restrictions and protectionist measures (Amusan & Nel, 2023; Collins & O’Brien, 2023; Shafi et al., 2023). 2. Free Trade Movement: The 19th centurysaw the rise of free trade ideologies, with influential thinkers like David Ricardo advocating for theprinciple of comparative advantage. Free trade policies aimed at minimizing government intervention and allowing markets to determine trade outcomes (Alabi, 2020; Cohen, 2021; Kellogg, 2021). The Great Depression and the Interwar Period: The economic turmoil of the Great Depression in the 1930s led to a resurgence of protectionism.Nations imposed tariffs and trade barriers to shield their economies fromthe global economic crisis (Grafl, 2023; Houpt, 2023; Olea Contreras, 2023). Post-World War II Era: In the aftermath of World War II, international institutions like the United Nations, the World Bank, and the International Monetary Fund were established,

promoting trade liberalization and cooperation. Bilateral and multilateral trade agreements, such as the General Agreement on Tariffs and Trade (GATT) and the World Trade Organization (WTO), aimed to reduce trade barriers and encourage economic integration (Jongerden, 2023; Teorell, 2023; M. Xu, 2023). Economic theories play a pivotal role in shaping government policies on international trade. Several key theories provide a framework for understanding why governments might choose to intervene in this sphere. (Arslanalp, 2022) Comparative Advantage: One of the foundational ideas in internationaltrade, proposed by David Ricardo, suggests that countries shouldspecialize in producing goods and services where they have a comparative advantage. However, comparative advantage alone doesn't always account for the complexities of real-world trade. Some industries might need protection to develop (Brakman et al., 2023; Sucandrawatiet al., 2023; Xue et al., 2023). Strategic Trade Theory: This theory posits that governments can strategically intervene to support industries in which they believe they can gain a competitive advantage in global markets. Subsidies, investments, and protectionist measures can be used to create "winners"in key sectors (Ledyaeva, 2023; Petersen, 2023b, 2023a). Infant Industry Argument: The infant industry argument contends that protectionism is justified during the early stages of industry development to enable domestic industries to mature and become competitive on a global scale. Government support may be necessary to provide these industries with a chance to grow and achieve economies of scale (Bresser-Pereira, 2023; Gandjon Fankem & Feyom, 2023). Balance of Payments and Exchange Rates: Governments may intervene in trade to maintain favorable balances of payments or stabilize exchange rates. This can involve manipulating currency values or imposing capital controls to manage trade imbalances (Agu et al., 2023; Guttmann, 2023;Sleman & Ali, 2023). National Security: A critical consideration for governments is the national security implications of trade. Control over certain strategic industriesand technologies can be deemed essential to safeguard a nation's security interests (Godsell et al., 2023; Kruse-Andersen, 2023; Lidén, 2023). Environmental and Social Concerns: Increasingly, governments areintervening in trade to address environmental and social concerns. This can include trade policies aimed at reducing carbon emissions, protecting endangered species, or ensuring fair labor practices in global supplychains (Asrori et al., 2023; Viet et al., 2023; Yanyan et al., 2023). There are several justifications for government intervention in international trade. These can be broadly categorized into economic, political, and social factors. In this section, we will explore each of these justifications in detail. (Ari, 2022)

Economic Justifications Protection of Domestic Industries: One of the primary economic reasons for government intervention is to protect domestic industries from foreign competition. Industries that are critical to a country's economic well-being or strategic interests may receive protection

through tariffs, quotas, or subsidies. Such protection aims to shield these industries from unfair competition and give them time to become competitive (Guo et al., 2023; Safner, 2023; Viet et al., 2023). Market Failure: In cases where markets fail to allocate resources efficiently, governments may intervene in international trade to correct these failures. For instance, externalities, public goods, or information asymmetry can lead to market inefficiencies, and government intervention can help rectify these issues (M. Bennett, 2023; Meslyet al., 2023; Schmidt, 2023). Countering Unfair Trade Practices: Governments may intervene to counteract unfair trade practices by other countries. This includes actions like dumping (selling goods below cost), currency manipulation, or intellectual property theft. To protect domesticindustries and maintain fair competition, governments may respond with trade remedies (Gergel, 2022; Pirtac & Ursu, 2023).Preserving Jobs: The protection of jobs is a significant economic consideration for governments. High unemployment or jobdisplacement due to foreign competition can lead to social and political unrest. To mitigate this, governments may intervene to safeguard employment opportunities (Ray et al., 2023; Y. Zhang etal., 2023).Promotion of Strategic Industries: Governments may intervene to support industries that are deemed strategically important for national security or technological leadership. These industries may include defense, energy, or high-tech sectors, where self-reliance is considered vital (K. H. Chen, 2021; Haryanto, 2013; Zhong et al., 2020) Political Justifications Public Opinion and Voter Preferences: Elected governments are responsive to public opinion. If trade liberalization is perceived as detrimental to domestic interests, leaders may intervene to align with the preferences of their constituents (Kenny & Bizumic, 2023; Nemčok et al., 2023; Walgrave et al., 2023).Political Pressure from Special Interest Groups: Special interest groups, such as industry associations or labor unions, can exert significant influence on policymakers. Governments may intervene in international trade to appease these groups and secure their political support (Nownes, 2023; Stergaard & Halsey, 2023; Vernikov, 2023). Geopolitical Considerations: The geopolitical landscape can influence trade policy decisions. Governments may seek to align with or counter the trade policies of rival or partner nations to advancetheir geopolitical interests (Boute, 2023; Hinz, 2023; Stinson et al., 2023). National Sovereignty: The desire to maintain sovereignty and independence can lead governments to intervene in trade. Trade agreements and international organizations can be viewed with suspicion by some leaders, who fear a loss of autonomy (Aronczyk, 2023; Arseni, 2023; Stanojević et al., 2023).

Retaliation: Government intervention can be driven by a desire toretaliate against perceived trade injustices by other nations. This can lead to trade wars, where countries impose tariffs and trade barriers on each other in response to the actions of trading partners (Marlow et al., 2023; Mathur et al., 2023; Sippel et al., 2023). Social Justifications Environmental Concerns: In an era of growing environmental awareness, governments may intervene in trade to address environmental issues. This can include measures to curb carbon emissions, regulate the import of products that harm the environment,and promote sustainable trade practices (Mathur et al., 2023; Peisker, 2023; Y. Wu, Sun, et al., 2023). Labor Standards: Governments may intervene in trade to ensure that imported goods meet certain labor standards. This can involve restrictions on products produced under exploitative labor conditions or policies to promote fair labor practices in global supply chains(M. Li & Hu, 2023; Masino et al., 2023; Thomas & Anner, 2023). Consumer Safety and Health: The safety and health of consumers are paramount concerns for governments. They may intervene in trade toprevent the importation of unsafe or harmful products and to ensure the quality of imported goods (Kyayesimira & Muheirwe, 2023; Leskovac & Petrović, 2023; Witczak & Pokorska-Niewiada, 2023). Cultural Preservation: Some countries intervene in trade to protect and preserve their cultural heritage. This can involve restrictions on the import of cultural artifacts, films, or media content to safeguard theircultural identity (Chantamool et al., 2023; Reshma et al., 2023; C.H. Wu et al., 2023). Human Rights: Governments may intervene in international trade to address human rights concerns, such as the importation of goods produced by forced labor or other human rights violations. Sanctions and trade restrictions may be imposed to address these issues (N. J.Bennett et al., 2023; Mahdanian et al., 2023; McVey et al., 2023). Contemporary Examples of Government Intervention in International Trade To illustrate the variousjustifications and forms of governmentintervention in internationa trade, let's explore some contemporary examples from different parts of the world. United States-China Trade Dispute: The ongoing trade tensions betweenthe United States and China highlight the use of tariffs and trade barriers as a means of addressing perceived unfair trade practices, intellectual property theft, and the trade deficit. Both countries have imposed tariffs on each other's goods in an attempt to protect their industries and exert leverage (Cheng et al., 2023; Köstner & Nonn, 2023; Zheng et al., 2023). European Union and Environmental Standards: The European Union (EU) has implemented strict environmental regulations, such asrestrictions on the import of goods

with high carbon emissions or hazardous chemicals. These measures align with the EU's commitmentto environmental sustainability (Moneva et al., 2023; Tosun et al., 2023; Weirich & Turner, 2023). Brazil and Rainforest Preservation: Brazil has faced internationalpressure to address deforestation in the Amazon rainforest. Some countries have threatened to impose trade restrictions on Brazilianagricultural products if the government does not take action to

protect the environment (de Sant’anna Lopes et al., 2023; Filho etal., 2023; Radmann et al., 2023). Labor Standards and Global Supply Chains: The issue of poor labor conditions in global supply chains has gained prominence. Some governments have sought to address this by requiring companies to demonstrate adherence to certain labor standards in their supply chains, thereby preventing the import of products produced under exploitative conditions (Holzberg, 2022; Kaine & Josserand, 2018; Kuruvilla et al., 2020). National Security and Telecommunications: The United States has banned certain Chinese telecommunications companies from participating in its domestic telecommunications infrastructure due to national security concerns. This intervention is rooted in the protection of sensitive technology and critical infrastructure (“AI in Telecommunications: Q&A with John Donovan,” 2023; Chauhan & Mathew, 2023; Khamidullin, 2023). While government intervention in international trade can be justified on various grounds, it is not without its challenges and criticisms. These include (Bhaskar, 2022): Trade Wars and Escalation: One of the most significant challenges is therisk of trade wars and escalation. When one country imposes tariffs or trade barriers, the affected nation may retaliate, leading to a cycle of protectionism that harms global trade (de Nicola et al., 2020; Itakura, 2020; Kwan, 2020). Market Distortions: Interventions can lead to market distortions, whereinefficient industries are propped up at the expense of more efficient ones. This can hinder economic growth and innovation (Y. Li, Zhang,et al., 2023; Yao et al., 2023; S. Zhang et al., 2023). Rent-Seeking and Special Interests: Government intervention can beinfluenced by special interest groups and rent-seeking behavior. These groups may push for protectionist policies that benefit them but harmthe broader economy (Cole, 2023; Lauermann & Mallak, 2023; Trantidis,2023).Regulatory Complexity: International trade regulations and agreements can become exceedingly complex, making it challenging for businesses to navigate the global marketplace. This complexity can hinder economic efficiency (Cole, 2023; de Lucio & Mora-Sanguinetti, 2022; Trantidis, 2023).Loss of Economic Gains: Trade liberalization, as advocated by classical economic theory, can lead to higher economic growth and gains from trade. Government intervention can potentially reduce these gains (Giagheddu & Papetti, 2023; J. Li, Leng, et al., 2023; B. Yan et al., 2023).Unintended Consequences: Government intervention can have unintended consequences. For example, imposing tariffs to protect a domestic industry may result in higher prices for consumers (Blocker et al., 2022; Meissner & Mello, 2022; Turcotte-Tremblay et al., 2021). LO 7-3 The Aguments Againts Trade Policy

Trade policy has long been a subject of debate and scrutiny, with proponents extolling its benefits and critics raising concerns about its negative consequences (Meissner & Mello, 2022). This discussion delves into the arguments against trade policy, examining various perspectives and concernsassociated with international trade (Ateia et al., 2023; Kakkar et al., 2023; Madanaguli et al., 2023). While trade policies, such as tariffs and trade agreements, aim to bolster a nation's economy, create jobs, and foster international cooperation, they are not without their detractors. The following discussion will present a comprehensive analysis of the arguments against tradepolicy. (Wray, 2023) One of the primary arguments against trade policy revolves around job displacement and wage suppression (Cruz-Lorite et al., 2023; Kandemir & Apaydin, 2023; Mursalin, 2023). When nations engage in international trade,they often import goods and services that can be produced more (Khokhar et al., 2023; Levin & Schwartz, 2023; Shafiei et al., 2023). While this can leadto lower consumer prices, it can also result in the loss of jobs in industries facing stiff competition from abroad (Bar-Isaac & Shelegia, 2023; Richards &

Liaukonytė, 2023; Su, Wang, et al., 2023). Furthermore, the pressure to cut labor costs to remain competitive can suppress wages for the remaining workers in these industries. (Tok, 2022) Trade policy has also been criticized for exacerbating income inequality within countries (Diana et al., 2023; Z. Liu et al., 2023). Those in skilled and capital-intensive industries often benefit from trade by gaining access to larger markets and higher profits (Amanda, 2023; C. C. Lee, 2023; L. Liuet al., 2023). In contrast, workers in low-skilled, labor-intensive sectors may face stagnant wages and job insecurity due to global competition (Amanda, 2023). As a result, income inequality can widen, creating social and economic disparities. (Allen, 2022) Free trade can render nations economically vulnerable by increasing dependence on other countries for essential goods (Genovese et al., 2023;Kumar & Singh, 2023; Nahrin et al., 2023). Relying heavily on international suppliers can lead to supply chain disruptions, as demonstrated by the COVID-19 pandemic (Bisetti et al., 2023; Burki et al., 2023; O’Connor et al.,2023). Critics argue that domestic industries should be preserved to ensure national self-sufficiency and resilience. (Allen, 2022) Trade policy can have detrimental environmental effects, particularly when it encourages the outsourcing of production to countries with lax environmentalregulations (Abdalla et al., 2023; Chang et al., 2023; Tawonezvi et al., 2023).Critics argue that this outsourcing can result in pollution, deforestation, and resource depletion (Hussain & Reza, 2023; Maharana & Behura, 2023; Tawonezvi et al., 2023). The carbon footprint associated with long-distanceshipping and transportation is also a concern, contributing to global environmental problems. (Allen, 2022) National security is another contentious issue linked to trade policy (Adamu et al., 2023; Hjorth & Madani, 2023; Joireman & Tchatchoua-Djomo, 2023). Critics argue that a heavy dependence on foreign sources for critical goods can jeopardize a nation's security (Ozdamar et al., 2023; Saglam Ozdamar et al., 2023; Sarkhanov & Huseynli, 2023). An overreliance on imports in key industries, such as defense or healthcare, can leave a nation vulnerable in times of crisis (W. Li, Wei, et al., 2023; R. Maqbool et al., 2023; Rajab et al., 2023). Globalization, spurred by trade policy, often results in the spread of Western culture and values, leading to concerns about the erosion of local cultural identity (Cui et al., 2023; Jeanne et al., 2023; Steiner et al., 2023). As Western products and values permeate global markets, critics argue thatthis can undermine traditional societies and cultural diversity. (Amaglobeli, 2022) Trade policy can lead to trade deficits, where a nation imports more than it exports (I. Ali & Irham, 2023; Lu et al., 2023; Sharma et al.,2023). Critics

contend that persistent trade deficits can result in a net loss ofwealth as a nation accumulates debt to pay for its imports (Alsultany, 2022). They argue that trade imbalances can lead to economic instability. (Ari, 2022) Trade agreements may not adequately address labor rights, leading toconcerns about exploitation in developing countries (Blunt et al., 2023; Ghosh et al., 2023; Portes Virginio et al., 2023). Critics argue that lax labor standards can encourage the outsourcing of production to countries with poor working conditions, contributing to exploitation and unfair labor practices. (Bhaskar, 2022) Trade agreements often encompass intellectual property protections (Alley, 2021). However, critics claim that these provisions can be overly restrictive, limiting access to essential goods like medicines and hindering innovation by granting multinational corporations excessive control over intellectual property. (Arslanalp, 2022) Trade policies, particularly in democratic countries, are often driven by short-term political considerations (Anderson, 2023; Honig & Käihkö, 2023; Weinberg, 2023). Critics argue that this focus on immediate economic benefits can lead to policies that neglect long-term sustainability, environmental concerns, and social equity. (Bhaskar, 2022 LO 7-4 Development of The Wworld Trading system and Current Trade Issue The world trading system has undergone significant transformations throughout history (Berti Suman & Alblas, 2023; Petzold et al., 2023; W.Sun, 2023). From the days of barter trade to the complex web of international trade agreements and organizations that exist today, the globaleconomy has witnessed remarkable changes (Bakaki & Böhmelt, 2023; Balogh & Mizik, 2023; Jönsson et al., 2023). In this discussion, we will explore the development of the world trading system, from its origins to the present day (L. Chen et al., 2023; Ozili, 2023; Priss et al., 2023). We will also delve into current trade issues and challenges that impact nations across the globe.(Amaglobeli, 2022) Historical Development of the World Trading System (Cobham, 2023) Barter and Early Trade: The earliest form of trade involved simple bartersystems where goods were exchanged for other goods. This system,however, had its limitations, and as societies evolved, more sophisticated forms of trade emerged (Borovskaya, 2023; Latyshev, 2023; Montes, 2023). Mercantilism: During the Mercantilist era, which spanned from the 16thto the 18th century, nations pursued policies aimed at amassing preciousmetals, especially gold and silver, through exports and the establishment of colonies. The zero-sum

nature of this approach led to economicconflicts between nations (Latyshev, 2023; Montes, 2023). The Rise of Free Trade: The late 18th century saw the emergence of free trade theories, most notably those of Adam Smith and David Ricardo. The idea of comparative advantage, wherein nations specialized in the production of goods in which they had an advantage, marked a shift towards open and liberal trade policies (Ehrlich & Gahagan, 2023; Jung, 2023; Romero et al., 2023). The First Era of Globalization: The 19th century witnessed the spread ofglobalization and the establishment of the gold standard, fostering international economic cooperation. The formation of the World Trade Organization (WTO) also played a pivotal role in shaping global trade (Deloof & Paeleman, 2023; Z. Khan et al., 2023; Yuliati et al., 2023). Interventionist Policies and Protectionism: The interwar period, marked by the Great Depression and the two World Wars, saw a resurgence of protectionist policies as nations sought to shelter their domestic industries. This era highlighted the fragility of the world trading system (Dennis & Stanley, 2023; Langford et al., 2023). The Post-World War II Order: After World War II, the Bretton Woods Conference led to the creation of institutions like the International Monetary Fund (IMF), the World Bank, and the General Agreement on Tariffs and Trade (GATT), which later evolved into the World Trade Organization (WTO). These institutions aimed to promote internationaleconomic stability and cooperation (Bassiouni, 2023; Gutner, 2023). The establishment of the WTO in 1995 marked a significant milestonein the development of the world trading system (Condon et al., 2023; He & Zhao, 2023; Qureshi, 2023). This global body set the rules and regulationsfor international trade, providing a platform for dispute resolution andnegotiation (Condon et al., 2023; Ozieranski et al., 2023; Sacerdoti & Borlini, 2023). WTO agreements cover a wide array of trade-related issues, including tariffs, intellectual property, subsidies, and non-tariff barriers. (Arslanalp, 2022) One of the fundamental principles of the WTO is the Most-Favored- Nation (MFN) principle, which ensures that member countries cannot discriminate between trading partners. Additionally, the WTO promotes transparency and the resolution of trade disputes through a structured mechanism The WTO's role in the world trading system has been both pivotal and contentious (Mao etal., 2023; Z. Yang et al., 2023; C. Zhang et al., 2023). While it has facilitated a

rules-based framework for international trade, it has also faced criticism for its inability to address evolving global challenges adequately. (Ari, 2022) Current Trade Issues and Challenges (Ari, 2022) Trade Tensions Between Major Economies: Trade tensions between the United States and China, the world's two largest economies, have beena significant concern. These tensions have resulted in a series of tariffs and counter-tariffs, impacting industries on a global scale (C. Y. Kim& Jin, 2023; Krzak, 2023; Shareef & Tawfeeq, 2023).Protectionism on the Rise: In recent years, there has been a resurgenceof protectionist policies in various countries. These include the imposition of tariffs, the use of non-tariff barriers, and the revival of nationalistic trade policies. Protectionism can hinder global economic growth (Baur & Flach, 2023; Pane & Patunru, 2023; Ruan & Feng, 2023).Trade and Environmental Concerns: The environmental impact of global trade is becoming increasingly salient. The transportation of goods acrosslong distances contributes to greenhouse gas emissions and environmental degradation. This has led to calls for more sustainable trade practices (Rudolph et al., 2023; Schaafsma et al., 2023; Thi et al., 2023).Digital Trade and E-commerce: The rapid growth of e-commerce anddigital trade has presented new challenges for trade regulations. Issues related to data privacy, intellectual property rights, and cross-border e- commerce transactions require novel policy approaches(Y. Jin, 2024; Tuo, 2024). Dispute Resolution Challenges: The WTO's dispute resolution system has faced difficulties, including the appointment of new judges and addressing the concerns of developing countries. Reforming the dispute resolution mechanism is essential to maintain the effectiveness of the WTO (Al-Tarawneh & Haloush, 2023; Gabuthy, 2023; Halim, 2023). Regional Trade Agreements: The proliferation of regional trade agreements,such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership (RCEP), has led to a complex web of trade regulations. This raises questions about the future of multilateral trade negotiations (Jafari et al., 2023; W. Lee et al., 2023; X. Zhang et al., 2023). Trade and Global Health: The COVID-19 pandemic exposed vulnerabilities in the global supply chain. The crisis prompted discussions about the resilience and flexibility of trade systems in times of emergency, and the need for international cooperation in securing the supply of essentialmedical and pharmaceutical products (Hawkins et al., 2023; Xing et al., 2023; X. Zhang et al., 2023). The world trading system is at a crossroads. To address current challenges and shape the future of international trade, several key considerations must be taken into account: (Arslanalp, 2022)Reform of the WTO: Many experts and policymakers

believe that the WTO needs reform to maintain its relevance. Revisiting the dispute settlement mechanism, addressing the concerns of developing countries,and enhancing transparency are some of the crucial aspects (Hawkins et al., 2023; She, 2023).Balancing National Interests with Global Interdependence: Nations must strike a balance between protecting their domestic industries andpromoting global interdependence. Trade policies should aim to foster economic growth while addressing the concerns of their citizens (She, 2023).Sustainability and Climate Change: Incorporating sustainability and environmental concerns into trade agreements is increasingly essential. This includes addressing issues related to carbon emissions fromtransportation and promoting eco-friendly trade practices (Correa-Gonzálezet al., 2023; Orazalin et al., 2023; Zhao et al., 2023).Digital Trade and Data Governance: With the rise of the digital economy, trade agreements must adapt to the realities of the 21st century. This involves setting standards for data governance, intellectual property, and e-commerce (Vásquez Callo-Müller & Kugler, 2023; L.Zhou et al., 2023) Regional vs. Multilateral Trade Agreements: Policymakers must consider the merits and demerits of regional trade agreements versus multilateral ones. Striking a balance between these approaches will shape the future landscape of international trade (Finbow, 2023).Preventing Trade Wars: Avoiding protracted trade conflicts and trade warsis essential. Diplomacy and negotiation should be prioritized over unilateral tariff measures(Schaafsma et al., 2023). Global Health Security: The COVID-19 pandemic has demonstrated the need for cooperation in ensuring the supply of critical goods and pharmaceuticals during health emergencies. International agreementsaddressing these concerns are vital(Halim, 2023; W. Lee et al., 2023). LO 7-5 implicarion for manager of development in the wolrd trading system The world trading system plays a vital role in shaping the global economy, influencing economic growth, development, and international relations (Bakir, 2023; Cudworth & Hobden, 2023). For managers of development in developing countries, navigating the complexities of the global trading system can be a daunting task (Staritz et al., 2023; Y. Wu, Yan, et al., 2023; Z. Wu et al., 2023). In this discussion, we will delve into the implications for these managers within the context of the world trading system (Mishra & Dharmani, 2023; Segbenya & MensahMinadzi, 2023; Vo et al., 2023). We will explore how international trade affects economic development, the challengesand opportunities it presents, and the strategies that can be employed to maximize benefits while mitigating risks. (Ari, 2022)

International trade is an essential driver of economic development in developing countries (Aqeeq et al., 2023; Hussain et al., 2023; Verma et al., 2023). It offers numerous potential benefits, such as access to larger markets, increased foreign direct investment, technology transfer, and job creation (Aqeeqet al., 2023; Raihan, 2023a; Sabela et al., 2023). The flow of goods and services across borders enables countries to specialize in their comparative advantages, which can lead to increased productivity and economic growth (Brondino, 2023; Hassan Malik et al., 2023). However, the extent to which these benefits materialize depends on the trade policies and strategies employedby managers of development. (Arslanalp, 2022)Despite these challenges, managers of development in developing countries can leverage the world trading system to their advantage. Key opportunities include (Bhaskar, 2022): Diversification: Through international trade, developing countries can diversify their economies and reduce dependence on a single sector,mitigating risks associated with commodity dependency (Cassemiro et al., 2023; J. Yan et al., 2023; Yue et al., 2023). Export-Led Growth: A well-executed export-led growth strategy can drive economic development by focusing on competitive advantages andincreasing foreign exchange earnings (Bozatli et al., 2023; M. S. Islam, 2023). Integration into Global Value Chains: Developing countries can participate in global value chains by offering competitive labor costs and other resources. This integration can lead to technology transfer and job creation (Egger et al., 2023; Golo, 2023; Senturk et al., 2023). Regional Trade Agreements: Regional trade agreements, such as the African Continental Free Trade Area (AfCFTA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), offer opportunities for developing countries to access new markets and reduce trade barriers (Hayakawa et al., 2023; Mamba & Balaki, 2023). Trade Capacity Building: International organizations and development partners provide assistance to build trade capacity and improve the ability of managers in developing countries to navigate the complexities of the global trading system (Calabrese & Tang, 2023; Saha et al., 2023; Vargas-Hernandez et al., 2023). To capitalize on the opportunities and address the challenges presented bythe world trading system, managers of development in developing countries canemploy several strategies (Allen, 2022):

Trade Policy Formulation: Developing clear and coherent trade policies that align with development objectives is crucial. This involves assessing the impact of trade policies on various sectors and stakeholders (Al Abri et al., 2023; Kumari et al., 2023; Mugnier, 2023).Infrastructure Development: Investing in infrastructure, such as transportation and logistics, is essential to reduce trade costs and improve competitiveness (Qiao et al., 2024; Roy et al., 2024; ون زيت ,2024). Quality Standards and Compliance: Meeting international quality standards and intellectual property requirements can enhance access to global markets. Governments can support capacity building and regulatory alignment (Kabwe, 2023; Nts’upa et al., 2023; Sarma et al., 2023). Diversification: Encouraging diversification of exports and industries can help mitigate risks associated with commodity dependency(Mamba & Balaki, 2023; Saha et al., 2023). Trade Promotion and Marketing: Promoting products in international markets through marketing and trade missions can help managers indeveloping countries access new customers and expand their export base (Huntsman & Bulaj, 2023; Nts’upa et al., 2023; Sarma et al., 2023). Trade Facilitation: Simplifying customs procedures and reducing red tape can streamline international trade, making it more accessible and efficient(Fan et al., 2023; Fu et al., 2023; Takpara et al., 2023). Strengthening Regional Integration: Participating in regional trade agreements can provide a stepping stone for managers in developing countries to access larger markets and reduce trade barriers (Brondino etal., 2023; Le, 2023; D. Yan & Li, 2023). To illustrate the implications for managers of development in the world trading system, we can examine the experiences of specific countries. Let's take a closer look at a few case studies (Cobham, 2023): China: China's rapid economic growth is closely tied to its trade policies. By embracing export-led growth, China has become a global manufacturing hub and a significant player in international trade (Rao etal., 2023). Vietnam: Vietnam's success in diversifying its export base and participating in global value chains demonstrates the potential for development through international trade (Rao et al., 2023). Kenya: As a member of the AfCFTA, Kenya is poised to benefit from regional integration, expanding its access to African markets (Feng etal., 2023; Kwaw-Nimeson & Tian, 2023; Tu et al., 2023). .CHAPTER IIICONCLUSION

The instruments used by governments to influence international trade flows are multifaceted and have far-reaching consequences for economies and international relations. This comprehensive discussion has exploredthe various tools employed, from tariffs and subsidies to non-tariff barriers and trade agreements, as well as the broader context in which they operate. It has examined the economic and political implications of these instruments, their controversies, and the evolving landscape of international trade. By understanding the intricacies of government policy in international trade, we can better appreciate the dynamics that shape our global economy and the challenges that governments face in a rapidly changing world Government intervention in international trade is a multifaceted issue with economic, political, and social dimensions. While there are various justifications for such intervention, it is essential to strike a balance between protecting domestic interests and promoting global economic growth. Trade policies should be guided by a comprehensive understanding of the implications and consequences of government action.The history of government intervention in international trade reflects the evolution of economic thought and the changing priorities of nations. From mercantilism to free trade ideologies and protectionist measuresduring economic crises, trade policies have adapted to the demands of the times. Economic theories provide a framework for understanding the rationale behind government intervention. These theories, including comparative advantage, strategic trade, and infant industry arguments, inform policy decisions and shape the strategies that governments employin the international arena. Justifications for government intervention canbe economic, political, or social in nature. These justifications encompassa wide range of objectives, from protecting domestic industries and jobsto addressing environmental concerns and promoting human rights.Government intervention is often a response to the complexities of the globalized world, where market failures, political pressures, and societal concerns intersect. While government intervention can be essential in addressing various challenges, it is not without its criticisms and risks. Trade wars, market distortions, and unintended consequences must becarefully considered when crafting trade policies. In conclusion, government intervention in international trade is a dynamic and vital aspect of global economic relations. As the world continues to evolve, governments will grapple with the complexities of trade policy and strive to strike the right balance between domestic interests and global economic growth. The challenge lies in designing policies that maximize the benefits of international trade while addressing the diverse and evolving concerns of nations and their citizenss

While proponents of trade policy emphasize its potential to boost economic growth, create jobs, and foster international cooperation, critics raise valid concerns about its adverse consequences. Job displacement, income inequality, environmental damage, national security risks, and the erosion of cultural identity are just a few of the arguments againsttrade policy. It is essential to recognize these concerns and work toward creating trade policies that strike a balance between economic growth and social welfare, ensuring that the benefits of internationaltrade are more equitably distributed and sustainable for the long term.In this discussion, we have examined these arguments against trade policy in detail, providing a wellrounded perspective on the topic. Itis important to engage in informed, open dialogue on this subject and consider these criticisms when formulating and evaluating trade policie.By doing so, nations can strive to create a trade environment that maximizes the benefits of globalization while mitigating its negative impacts The development of the world trading system has been a dynamic and complex journey. From early barter systems to the formation of the World Trade Organization, international trade has transformed significantly. However, current trade issues and challenges pose substantial hurdles thatmust be addressed to ensure the continued growth and stability of the global economy. The future of the world trading system depends on theability of nations to adapt to the changing economic landscape, foster cooperation, and strike a balance between national interests and global interdependence. It also requires addressing the pressing issues of environmental sustainability, digital trade, and global health security As the world grapples with these challenges, it is essential to rememberthat a rules-based international trading system benefits all nations, fostering economic growth, reducing poverty, and promoting peace and stability. It is in the collective interest of the global community towork together to ensure the continued development and effectiveness of the world trading system in the 21st century . Managers of development in developing countries must grapple with the implications of the world trading system, balancing the potential benefits of international trade with the challenges it presents. To achieve sustainable development, these managers must develop coherent trade policies, invest in infrastructure, and embrace diversification while mitigating risks. The world trading system, with its opportunities and challenges, remains a pivotal factor in shaping the path of development for countries around the globe. While navigating this complex landscape may be demanding, it offers substantial rewards for those who can effectively harness its potential.

CHAPTER 8 INTRENATIONAL BUSINESS FDI : BRIDGING NATIONS, BUIDING PROSPERITY INTRODUCTION According to Onody et al, (2022) Foreign Direct Investment (FDI) plays a pivotal role in the global economy, representing a fundamental aspect of international business and trade. FDI refers to the investment made by individuals, corporations, or governments in a foreign country's assets, such as companies, real estate, or infrastructure (Aluko et al, 2023). These investments are aimed at establishing longterm business interests, control, or influence in the host country. FDI can significantly impact a nation's economic growth, job creation, and technological advancements, making it a critical subject of study and analysis in the field of economics and international relations (Jardet et al, 2023).Then, according to Ullah et al. (2022) the concept of FDI has gained prominence in recent decades due to globalization, liberalization, and the increasing interconnectedness of world markets. As a result, countries have become increasingly proactive in attracting foreign investments through various incentives and policies. The competitive landscape for FDI has intensified as nations strive to create an environment conducive to foreign investors (Pacariz, 2022). Understanding the factors that drive FDI, the benefits it offers to both the host and source countries, as well as the challenges associated with it, is crucial for policymakers, businesses, and economists to navigate the complex dynamics of international investment (Mahbub et al, 2022). In this context, this paper will delve into the multifaceted nature of FDI, shedding light on its significance in fostering economic development, technology transfer, and job creation (Abu Bakar et al, 2022). Additionally, it will explore the various factors that influence the flow of FDI, such as political stability, economic conditions, and market size (Amdam & Benito, 2022). The analysis will also consider the potential risks and drawbacks associated with FDI, including issues related to national sovereignty and economic dependency (Hofbauer & Limanskis, 2022). By examining FDI from different perspectives, we can gain a deeper understanding of its role in shaping the global economic landscape and the potential implications for both developed and developing nations (Prasetyo Khafidzin, 2021).

In this context, the research will seek to explore the impact of technological innovation and knowledge transfer often associated with FDI, as well as the role it plays in reshaping the global economic landscape (Wang et al., 2023). Furthermore, we will examine the efforts made by countries to mitigate potential risks associated with FDI, such as environmental protection and labor rights (Jijian et al., 2021). This analysis will provide a more comprehensive perspective on how FDI can be a factor supporting sustainable global economic development while managing the challenges that may arise in this context. Thus, a deeper understanding of FDI becomes increasingly important for policymakers, businesses, and economists to navigate the complex dynamics of international investment (Gyamfi et al., 2022; Jiang & Martek, 2021). LITERATURE REVIEW AND DISCUSSION Foreign Direct Investment (FDI) has been a dynamic force in the world economy, and current trends indicate its continued importance (Činčikaitė & MeiduteKavaliauskiene, 2023). In recent years, there has been a notable shift in FDI towards the technology and innovation sectors. With advancements in technology and the digital economy, multinational corporations are increasingly investing in high-tech areas, such as artificial intelligence, green technology, and biotechnology (Shekhar & Jena, 2021). This trend is motivated by the intention to leverage the opportunities for sustained expansion and advancement in these industries. Moreover, FDI has been moving from developed countries to emerging markets, with Asia, particularly China and India, attracting substantial inflows of foreign investment (Temouri et al, 2022). This is indicative of the growing economic significance of emerging markets, with governments in these countries often offering incentives and reduced regulations to attract FDI (Smirnov & Lukyanov, 2021). According to Samour et al, (2022)Various theories help explain the motivations behind FDI. The Market Imperfections Theory suggests that firms invest in foreign markets to exploit differences in factors like labor costs and resources. The Internalization Theory posits that companies engage in FDI to internalize their operations and reduce transaction costs, thereby improving coordination and control (Nighat Farooq et al, 2022). Additionally, the Eclectic Paradigm, also known as the OLI framework, combines ownership advantages, location advantages, and internalization advantages to elucidate the factors driving FDI decisions (Sawitri & Brennan, 2022). Political ideology significantly influences a government's attitude toward FDI. Liberal governments tend to be more welcoming of FDI, emphasizing open-market policies and reducing restrictions to attract foreign investors (Zhao, 2022)