State Interventionism in Foreign Trade

Abstract

The chapter refers to the literature to show how the state mitigates the effects of market failures in foreign trade through intervention in response to inefficient markets at national and international levels. The research study leads to several conclusions. Firstly, theoretical research focuses on the effects of market inefficiency on the domestic market, apart from the analysis of an international perspective, which implies that in the conditions of globalization there is a need for extended research in an international context. Secondly, state interventions are necessary in creating administrative and legal conditions for facilitating trade exchange in the context of the role of transnational corporations in the global economy, as well as in reducing the adverse impact of international turbulences on the competitiveness of national entities through the use of export supporting instruments.