Government Intervention And Protectionism In The UK: Analysis Of Trade Response And Policy Instruments

Impact of Government Interventions/Protectionism on Trade in the UK

In case of the Government Intervention/protectionism and the policy instruments available for such interventions in context to the United Kingdom. It is crucial to understand that the global as well as the worldwide response on terms with the trade whether being on the import as well as the export along with the during the pandemic condition which being the 2019 and 2020 has been led by the G20 and the World Trade Organization (WTO). It defines the condition which explains the situation that the social economical reasons as well as the economical condition. It will defines the perspective which provides an efficiency level which provides the government’s policy interventions which may prevent or stop the downfall of the impact on foreign direct investment (FDI).The other issues which explains the perspective which will explain the element where the concerns which must be tackled will be the unprotected sector whether being health, unemployment, future economic downturn as well as the mobility restrictions (De Vita, Alexiou, Trachanas, and Luo, 2021). The other pointers business will be having a security and protecting the environment small business along with the demand and supply chain, the follow of the economy, GDP, NDP, as well as the purchasing parity of the individual and the perspective which will ease the vulnerable situation and the governmental restrictions and severely affected loses and the irregular employment, short term analysis, trade and the regular flow of income. The major factor is that the impacts in terms with the global unrest along with the major depression and the uncertainty among the general public. In the major combat it is crucial to understand that the global loss and the multiregional economic. It also explains the issues in relation with the perspective largely disruptive in relation which being the Economic uncertainty created by the Covid pandemic and the post-Brexit adjustments, job insecurity, shrinking household incomes, and structural. Henceforth, the dealing in relation to the country and the country dealing and how to manage the international and the domestic unrest. 

Impact of these export-restrictive measures on different stakeholders has seen a massive change in the way of trading the imports and the exports in the country as well as foreign revenue associated with it and as well as managing the forex change along with the rules and regulations and the government intervention. It explains the perspective trade sanctions, arms embargoes and trade restrictions, including trade controls, transit controls and restrictions on terrorist organisations. It also explains the process where the imposes of having the trading controls and the trafficking as well as defining the overseas it deals with the control of the regime as well as it will process the distorting effect on trade. To state the situation in the same context the shareholder which will benefit the most is the one which has the complete benefit with the restrictive policy which being that the concerned party has the exclusive rights to the trade on the national and the international level. It explains the concept where the system essential goods items and the basic needs where will the shareholders were given a space out to be in the business and the work through that in the pandemic condition the revenue flow even though it being low in terms with the profits. On the other hand , the shareholders which will not at all benefit will be the system dealing with the non essential goods and services along with the luxury items and the entertainment essential goods items shareholders where in the given a space which deals with a closure of the business and deal with the shutdown of the work through that in the pandemic condition the revenue flow is minimized and the company trading is shut down or the tax compliances or the regulation has increased and taken a very high major jump which becomes difficult to the trade and do with the international trading and forex management. Covid -19 has been one of the most difficult and the hard situations leading to a downfall on the business and the flow of the money. However, to minimize the unrest and the confusion in the country the government has made serious steps to assure that the trade restrictions in the export of medicines, medical devices and personal protective equipment.   

Policy Instruments Available for Government Interventions

In the given table the analysis is explained as follows:- 

In connection with the charge 50% tax on imported products where the transporting and the allied costs is nullified. The costing will be done as follows:-

Therefore, the profit will be defined as follows:-

With the analysis which the present country will be justified which will stated that the country will definitely have following balances and the proofs which will explain the best competitive results:-

(Godwin, and Cook, 2018)

In the given case the situation is changed now the condition will be stated and expressed as below-

Country X as well as the Country Y are under the XYTRA act and therefore the 50 5 tax is nullified and the profit is considered to be 100 % therefore the changes will be

After the changes on the prices the best solution which can be opted in the given case will be listed and explained as follows:-

The major reason being that the import tax is nullified and therefore between X Country and Y country the internal purchase must be done which shows the higher profit value as the tax is nullified and the pact is dully signed. Hence, as per profit margins the three products are distributed in P, Q, R. In terms with the product Z it is evident that the profits will be slashed by 50 percent as no pact is signed and no concession will be provided. Thus, in the given product which other of the two companies is providing higher profits to the country Z the respective products must be purchased from that respective organisation?       

In the given condition  the analysis is based on studying the small scale analysis of the   domestic automobile manufacturers in the UK and how will the intervene and the international market which being the china who is itself a well established in the worldwide especially in relation to the pricing and the supply chain and distribution. In the given condition the option is to understand as to how the entry modes need to justified and demanded to assure that the china strategy is properly break through and the can provide better success margins and expanding internationally in a profitable manner. The option is compared as follows:

In the first option which being the Licensing the technology to a firm in China

In this context it is essential to understand how the UK does and China deals in terms with the Licensing and the technology transfer. On the more, the transfer of technologies may involve various forms and rules and regulations as well as the government compliances. Along with the involve significant as well as the sensitive issues deals with the proprietary confidential information. The major support will be in connection with the China’s Ministry of Commerce within 60 days of the effective date of the relevant contract along with the manufacturing and the prohibited restricted (Harris, 2020). The major concerns in this account of understanding the major issue which being the Chinese law prohibits a foreign licensor from disclaiming liabilities as well as the risks and the technologies of being the Chinese parties. The other objection which is being raised in connection of the whether the product will be marked as the Made in China” model to a “Made by China” model.        

Concerns in the Unprotected Sector

In the second option which being Undertake FDI by acquiring a firm in China the major question which must be understood in the perspective of having the deals with the Chinese Equities along with the Government Bonds and the investment will be done in connection with the stability and deals with the government drive the economic globalization. It defines the size growth along with the governmental economic reform which will explain the segment of having the Sectoral along with the distribution along with the forms of investment which will define the wholly foreign-owned enterprises productivity along with the costing and the financial as well as the technological infrastructure.  The best part is that the “export promotion development strategy. It will explain the situation where the china and the UK exploring this option the country which being the seller is defining the multilateral investment which will explain the protection plan along with the Promotion. Investment is strongly dominated under the regional priority and also impacted through the concept of having the Moving FDI towards more capital-intensive activities (Harris, 2020). The major counter is that the portfolio will be understood and explained in a manner which has to juggle under the Chinese equities and Chinese government bonds.   

In the third option which is Undertake FDI by establishing a new firm (Greenfield investment) in China. This is a very difficult situation which is the company deals in the UK and the China Trade. Mainly, because the company will deal with the compliances of both the countries on the more, the FDI will deal with the regulations and the compliances will be routed throw both the country and the regulations and the government laws and binding. The other issue is that that the company will be defined with other cultural and the employment issues along with the consumers and the cultural barriers. The other factor will be foreign exchange and how the dealing will be managed. The benefit will be that the company can grow globally as the stake will be divided as well as the business can also prosper and deal with the foreign trading and foreign investment (Dhingra, Ottaviano, Rappoport, Sampson, Thomas, 2018).

In the given case of three conditions the best option which will be that electric car company must opt for the Licensing the technology to a firm in China along with the factor that the governmental and the regulation will also will be minimized and the profits can be better achieved.   

Reference

De Vita, G., Alexiou, C., Trachanas, E. and Luo, Y., 2021. Does intellectual property rights protection affect UK and US outward FDI and earnings from FDI? A sectoral analysis. Journal of Economic Studies.

Dhingra, S., Ottaviano, G., Rappoport, V., Sampson, T. and Thomas, C., 2018. UK trade and FDI: A post?Brexit perspective. Papers in Regional Science, 97(1), pp.9-24.

Godwin, E.S. and Cook, M., 2018. Determinants of Greenfield emerging market outward FDI into the UK. International Journal of Emerging Markets.

Harris, R., 2020. FDI, capital and investment markets. In Productivity Perspectives. Edward Elgar Publishing.

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