foreign supplies so as not to become dependent on them.

20.4 How Governments Enact Trade Policy: Globally, Regionally, and Nationally

Governments determine trade policy at many different levels: administrative agencies within government,

laws passed by the legislature, regional negotiations between a small group of nations (sometimes just two),

and global negotiations through the World Trade Organization. During the second half of the twentieth century,

trade barriers have, in general, declined quite substantially in the United States economy and in the global

economy. One reason why countries sign international trade agreements to commit themselves to free trade is

to give themselves protection against their own special interests. When an industry lobbies for protection from

foreign producers, politicians can point out that, because of the trade treaty, their hands are tied.

20.5 The Tradeoffs of Trade Policy
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