ABSTRACT
A country's economic foreign policy is an integral part of a larger policy, the object of which is to ensure the country's greatest security and welfare. National protectionist policy, Imperial Preference, and abandonment of the open-door policy have involved discrimination against foreign countries. Capital investment provides the easiest means of co-ordinating political and economic policy. The economic policy adopted during recent years has contributed to the partial recovery of British industry and trade from the depths of the depression. Protectionist policy was introduced in Great Britain at a fortunate moment for its supporters. Trade agreements with certain foreign countries have led to some improvement in British exports. In free-trade days the Government had no responsibility for adjusting the development of the different industries and other economic activities. In pure economic theory laissez-faire can be shown to have long-run advantages over intervention and regulation.
