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Political Science 3991 A1 (2) Institutional Role of the State to Make Trade Possible - Essay Example

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Political Science 3991 A1 (2) Institutional Role of the State to Make Trade Possible Introduction Globalization signifies that every country should trade and take part with respect to the economy of the world. It is a process which helps in enhancing trade worldwide…
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Political Science 3991 A1 (2) Institutional Role of the State to Make Trade Possible
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Download file to see previous pages The government of United States played a significant role in the growth of infrastructure as well as technology. The nation undertakes various regulatory as well as social functions for the development of the economy. The state has an important role to play in the market The US government plays a vital role for ensuring the development of its economy. The state ensures that there is a free flow of credit for the development of the groups which are not effectively served. It also undertakes steps to provide an amount of credit for the development of small entrepreneurs and imports as well as exports services. The government or the overall nation has also been involved with the tasks of developing the infrastructure as well as technology for the progress of the economy. The revenue collected by the government is transferred among the income classes by the tax system as well as outlays. The government generally pursues a vertical redistribution of income which assists the elder people through the social security programs. The US government influences the economy through its tax collection systems such as charging more taxes on products which are identified to be obsolete. It controls numerous economic activities for the progress of the economy of the country. The nation has played a significant part in the development of economy as along with providing social services. ...
he state formulate plans as well as undertake steps for the development of economy which will help in enhancing the trade in the global market (Labonte, 2010). The institutional role of the state to make trade possible The US government has undertaken various plans as well as actions for the improvement of economy of the country. The state has adopted various steps for ensuring free flow of financial supports for the improvement of the society as well as overall economy. The government has played a vital part towards developing its economy by providing financial support for enhancing exports as well as imports. It made attempts towards the development of small business entrepreneurs for enhancing trade as well as market. The trade practices of the state should be fair as well as efficient for its enhancement at the international level. The government regulates the financial sectors for free flow of credit for the purpose of providing assistance to the under developed sectors for improving the economic conditions as well as trade (Stiglitz, 2006). The trade of goods as well as services in between the countries entails numerous costs. Transaction cost is identified to be one such cost and is considered to be a direct cost which is believed to be associated with trade. It is a cost which is charged on the profit earned for the trade of goods as well as services. The transaction cost is classified into three stages of which the first stage is supposed to be contact and signifies that the buyer looks for information about the product of the supplier with the intention to trade. Traders in this stage carry on with exploration of information in relation to the trade that is planned to be performed. In the similar context, transaction cost is believed to be associated with the ...Download file to see next pagesRead More
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