Government Intervention in International Trade

The intervention of the government on traditional trade has become a common theme across various jurisdictions. The major reason for government intervention in international trade is to protect the consumers and producers in the economy. For instance, if a foreign producer has an excess supply, they are likely to export and dump the excess in other countries at low prices. This will hurt the domestic producers because they may not be in a position to produce the same product and sell them at the same cheap prices. As such, the government intervenes to protect domestic producers and consumers.