What is international trade policy? What is the government's role in international trade policies?

International trade policy is a policy
related to trading across national boundaries. A government establishes an international trade
policy that encompasses actions they will take to protect the best interests of their citizens
and companies.

Some of the major actions governments take are free trade
policies or tariffs. Free trade policies encourage trade between certain countries. A good
example of this is NAFTA, the North American Free Trade Agreement, which allowed free trade
throughout the United States, Mexico, and Canada. Tariffs are sometimes imposed on other
countries as possible punishment for negative actions or to prevent the industry in those
countries from damaging similar domestic industries; a tariff ensures the nation gets money from
that trade and also discourages as much trade in those certain areas.