British insurance providers would like better access to the Indian market. What instruments in the trade policy tool box should the UK government use, and why?

British insurance providers would like better access to the Indian market. What instruments in the trade policy tool box should the UK government use, and why?

The brief should propose realistic policy responses or reforms in light of existing theoretical and empirical evidence, and be written for decision-makers who would be positioned to act upon its recommendations. The argument for these proposals should examine their political and economic costs and benefits as well as broader distributional implications. Similarly, what are the decision-makers’ incentives to undertake the suggested policies? Is the proposal politically feasible?

Quick Response

The first important instrument of trade policy that the UK government should use includes tariffs, which is the tax levied on all imports. In most cases, a tariff increases the cost of imported products while protecting domestic producers from foreign competition. However, the government benefits from tariffs since they increase government revenues. The other significant instrument of trade policy includes import quotas(Buffie, 2001). An import quota refers to a direct restriction on the number of goods allowed as imports in a country.  The UK should be ready to explore tariffs and quotas to ensure UK products penetrate the Indian market without reducing the quantity and quality of products…

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