Question 3

From time to time, governments intervene in international trading relationships for specific reasons. This intervention happens even if their country is a part of the World Trade Organization (WTO) or has a trade agreement with other countries. What justifications can be reasonably provided for such actions (2 arguments, explain them in detail)? What policies (or tools) can be used by governments who are intervening in the market (explain four briefly). To what extent do you believe such interventions may be beneficial or detrimental for the home or host economies?

Backup your argument with suitable examples.