Foreign Trade Policy

Policy enacted by the government sector of a domestic economy to discourage imports from, and encourage exports to, the foreign sector.

The three most common foreign trade policies are tariffs, import quotas, and export subsidies. Tariffs and import quotas are designed to discourage imports and export subsidies are designed to encourage exports. The general goal of these foreign trade policies is to create or increase a country's balance of trade surplus, that is, to increase net exports.

Sources:

⠀ FOREIGN TRADE POLICIES, AmosWEB Encyclonomic WEB*pedia, http://www.AmosWEB.com, AmosWEB LLC, 2000-2020. [Accessed: October 1, 2020].