Government money decisions, like taxes and spending, are important for trade between countries. Here’s how they work:
Tariffs and Taxes: When a government puts high tariffs on imported goods, it makes these items more expensive. This can change what people decide to buy and can cause problems between countries.
Investment in Infrastructure: When the government spends money on things like roads and bridges, it can help businesses export more. This is because better infrastructure makes it easier to make and move products.
Incentives and Subsidies: Giving bonuses or support to local companies can help them trade more. However, this might upset other countries who think it’s not fair.
In general, these government actions can help improve trade relations or create stress, depending on how they are applied.
Government money decisions, like taxes and spending, are important for trade between countries. Here’s how they work:
Tariffs and Taxes: When a government puts high tariffs on imported goods, it makes these items more expensive. This can change what people decide to buy and can cause problems between countries.
Investment in Infrastructure: When the government spends money on things like roads and bridges, it can help businesses export more. This is because better infrastructure makes it easier to make and move products.
Incentives and Subsidies: Giving bonuses or support to local companies can help them trade more. However, this might upset other countries who think it’s not fair.
In general, these government actions can help improve trade relations or create stress, depending on how they are applied.