Government Policies Influence On International Business Essay

Government Policies Influence On International Business - Essay Example The government views Free Trade Agreements as an effective way of opening up foreign markets to the exporters of the U.S. Policymakers and economists believe that Free Trade Agreements will not only reduce trade barriers to U.S.A’s exports but also serve to protect the country’s interests in the Free Trade Agreement partner country. The further reduction of barriers to trade and the subsequent creation of a transparent and stable investment and trading environment eases the cost burden of U.S companies to export products and services to trading partners. Free Trade comes with the following advantages to the U.S: †¢ Spreading the value of freedom.†¢ Reinforcing the very fundamental rule of law.†¢ Facilitating economic development in some of the developing countries in the world such as Colombia (Villareal, 2014).The promotion of innovation and competition in businesses in the U.S in the past decade is probably the greatest benefit of the Free Trade policy to the country. On the other hand, the dumping problem created by the same Free Trade Agreements is the worst of difficulties that local producers face. Advantage of Free Trade: Promotion of competition and innovation Currently, very few people in America earn a living from subsistence agriculture and local trade as that would be too costly in terms of financial costs and the time spent. Americans today can access most of the items that they need such as food and clothes on the open market with ease.