Why do governments particularly in developing economies


AgriCorp is a large trading company that exports various agricultural commodities and processed foods to developing countries. Bonnie Walters is a confident but inexperienced manager, who is often frustrated that developing countries impose high tariff and non-tariff trade barriers. These barriers raise AgriCorp’s cost of doing business, making the firm’s pricing less competitive in its target markets. How would you explain the rationale for government intervention to Ms Walters? Why do governments, particularly in developing economies, intervene in trade and investment activities?

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