Why should a manager in an international business care about the political economy of free trade or about the relative merits of arguments of free trade and protectionism

Question

Maximus Mooney

Business

21 December, 07:51

Why should a manager in an international business care about the political economy of free trade or about the relative merits of arguments of free trade and protectionism

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Answers (1)

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Cordova · Answer 1

The answer is explained below

Explanation:

To begin with, the policies that the goverments decide to implement in their countries tend to influece in a huge way the companies decisions and therefore its actions as well. Therefore that as a company manager of an international business he needs to stay very updated about the government policies over the countries where his company works. Moreover, the manager will understand that if there is free trade in a country then there will be no problems for his company to start selling there and obtaining the maximum profits as possible and if there is protectionism then the company will have to deal with the policies that the government implemented there. And that is why that as an international business manager he should really care about the policies of the country's government and if there is free trade of protectionism.