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Difino
| • | The tax, tariff and trade laws of a political region, state or trade bloc determine which forms of consumption and production tend to be encouraged or discouraged. All three are often changed by a trade pact.
Typically all three types of laws must also be changed to implement any program of moral purchasing, fair trade, safe trade, or any tying of money supply to methods of measuring well-being. It is advocates of these measures that usually refer to tax, tariff, and trade policy as a single and indivisible unit:
Human development theory and the anti-globalization movement, for instance, focuses on relationships between internal and external rules, and on the internal markets of a state, and what kinds of trade relations they create. They criticize inadequacy of existing rules, and argue that most of the so-called 'trade' rules are actually investment guarantees.
Critics of these movements and defenders of free trade and global investment liberalization respond that the older ideas of independent trade policy, investment policy and industrial policy assumed that a higher degree of control by governments over business was possible.
While factions disagree on the desirability of the changes and the direction of change, all agree that the newer ideas about unified tax, tariff and trade laws take globalization for granted, and assume that not only nation states but larger trade blocs and smaller regions and cities are in competitive positions relative to other players worldwide:
·Tax policy to encourage or discourage particular types of consumption or production in the jurisdiction.
Source: [wikipedia: tax, tariff and trade]
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