Government intervention in trade (reflection paper)
Verslo namų darbas. Government Intervention in Trade. Reflection Paper. References.
The present paper aims to reflect on the online article with the headline “As British Solar Industry Loses Subsidies, Big U.S. Backer Pulls Back” and the links it demonstrates in regard to the aspects of the political economy of international trade that were discussed in the class studies. The reflection paper will include a brief summary of the article, an outline based on the interpretation of the insight into the demonstrated aspects and, finally, the conclusions.
As it has been discussed in the class studies, the Government can use various methods to intervene in international markets and trade. Furthermore, the seven instruments of intervention, namely, tariffs, quotas and voluntary export restraints, local content requirements, administrative policies and subsidies can be used. It is mainly subsidies as government payments domestic consumers, to be exact; the cutting of subsidies is the main issue of the article. The article points out that SunEdisson has been pressing ahead for the most of the year as one of the most ambitious players in Britain’s solar energy.