ABSTRACT
This chapter begins with a review of the paradigms guiding international business-related policy-making before looking at the various interventionist tools that nation-states can wield if they so desire. It describes a study of the global governance regimes established to address the supranational aspects of international business politics. Debates over government’s ideal economic role are crucial to understanding the political framework within which international business operates. The global economy slumped in the 1970s, beleaguered by high oil prices, budget deficits, inflation, unemployment and saturated markets. This led to widespread disenchantment with Keynesianism and renewed support for classical economics, renamed neo-liberalism. Tariffs are usually assessed on an “ad valorem” basis as a percentage of a shipment’s value. They can also be “specific” and represent a lump sum for a given physical quantity. A country’s trading position is affected by its government’s general economic policies.
