Which of the following is true with regard to bribery? A) ...

[soccerdreamer_17]

Which of the following is true with regard to bribery?
 
  A) Bribery promotes a culture of dishonesty and immorality.
  B) Bribery poses no significant threat to market economies.
  C) Bribery is considerably rare in developing economies.
  D) Bribery is not acceptable in much of the world.

Question 2

Describe the main political motives behind government intervention in trade.
 
  What will be an ideal response?

[patma1981]

Answer to Question 1

A

Answer to Question 2

Government officials often make trade-related decisions based on political motives because a politician's career can depend on pleasing voters and getting reelected. Yet a trade policy based purely on political motives is seldom wise in the long run. The main political motives behind government intervention in trade include protecting jobs, preserving national security, responding to other nations' unfair trade practices, and gaining influence over other nations.
Protect Jobs- Short of an unpopular war, nothing will oust a government faster than high rates of unemployment. Thus, practically all governments become involved when free trade creates job losses at home.
Preserve National Security-Industries considered essential to national security often receive government-sponsored protection. This is true for both imports and exports.
Respond to Unfair Trade- Many observers argue that it makes no sense for one nation to allow free trade if other nations actively protect their own industries. Governments often threaten to close their ports to another nation's ships or to impose extremely high tariffs on its goods if the other nation does not concede on some trade issue that is seen as being unfair. In other words, if one government thinks another nation is not playing fair, it will often threaten to retaliate unless certain concessions are made.
Gain Influence- Governments of the world's largest nations may become involved in trade to gain influence over smaller nations. The United States goes to great lengths to gain and maintain control over events in all of Central, North, and South America, and the Caribbean basin.