Government intervention and regional economic integration

But what are the motives behind these government interventions and regional economic integrations (Irwin, 2015). Protectionism altitudes do not only emanate from non-economic factors such as demographic characteristics and value but also from the macroeconomic situation and the labor market inside a country or within a certain trade block. Countries that believe that their local industries are being affected negatively by unfavorable competition will more often than not implement trade protectionism. While some criticize that this move is prone to political forces, it is also regarded as a successful and suitable move especially by the business entities that stand to benefit. But as many studies have suggested, protectionism measures are only beneficial in the short term. Competitive advantage of firms can be broken down into two types; differentiation and low cost.

An integration of the stated types with the opportunity of activities to be achieved by a firm, leads to the three generic strategies as emphasized by Michael porter in his book of 1985 (Salavou, 2015). Porter theorized the three types of generic competitive strategy to help firm to handle competition. Government Protectionism in the U. S and its role in business activities and economic growth Over the past decade, the government of the U. S to incur on more import taxes. Different viewpoints about the government protectionism The whole issue of protectionism has always elicited heated debates and viewpoint. There are those parties which believe that protectionist measures are advantageous to a country or a certain trade block. They argue that the traditional case of free trade is grounded on a model that is oversimplified which cannot be simulated in the real world market.

According to Rodrik, (2018), recent debates as to what kind of trade is suitable for the global market has been shaped by vested interests and subjects reasoning with each group trying to show the advantages and disadvantages of each trade. It can also be stated that developing countries have a role in protecting their young companies. The role of the government may be expressed in terms of quotas, trade policies and tariffs. Arguments against protectionism The people against protectionism state the various disadvantages brought about by the restrictions against free trade. Most of the arguments citing the pressures it places on the pillar principles of free trade (Irwin, 2015). The other adversities of protectionism being on the protections it renders to organizations that compete over prices rather than quality, the denial of easy reach of some products for clients and the unethical sense of security it creates to the firms.

The Republic of China as showed by a recent study (Aminu, 2015) was annoyed by this action by the U. S, so in retaliation, they set up barriers against products from the U. S such as chicken. Such hostility between countries lowers specializations of production of good and then crashes the economy. Conclusion Since the late 1980s when Michael porter published his book of comparative advantage, the global community becomes curious as to the impacts of the various types of trades particularly regarding free trade and protectionism measures (Wilson et al, 2014). U.  The Future Of The Relationship Between The Us And China (Doctoral dissertation, University of Ghana). Damborg, C. , Danson, M. , & Halkier, H. , Lindbergh, L. , & Graff, J. The competitive advantage of nations 20 years later: the cases of Sweden, South Korea and the USA.