I need help creating a thesis and an outline on Importance of Domestic Political Institutions in Shaping the Outcomes of Tariffs and Trade Policies. Prepare this assignment according to the guidelines found in the APA Style Guide. An abstract is required. In this paper, the writer will present arguments that show the impact that domestic political institutions have had on countries’ trade policies and tariffs. The aim of this paper is to convey a comprehensive understanding of the dynamics involved in domestic political institutions’ impacts on trade policies and tariffs.
Why have trade barriers been reducing worldwide since the 1980s? Current and past theories show that there are at least three feasible answers. The first answer involves evolving preferences concerning trade policy among domestic parties. Clearly, in the 80s, many politicians and some lobby groups in countries across the world altered their views on what their perfect trade tariffs and trade policies were (Oatley 2011, p. 26). However, the biggest factors are the domestic political institutions that dictate most countries’ approach to tariffs and trade policy. The use of these institutions as agents of change in global trade started centuries ago. The United States is a perfect example of what stable and progressive domestic political institutions can do to countries’ tariffs and trade policies.
Political parties in America have always had different approaches to political situations, but they somehow share a common goal in that they wanted and still want to give the United States a clear advantage in trade agreements and policies (Oatley 2011, p. 29). Across the world, countries that sign numerous trade agreements with each other have been shown to share one thing: stable, old, and progressive domestic political institutions that inspire their approach to the creation and implementation of tariffs and trade policies. Political leaders had bigger political motivations to sign trade agreements as the number and size of victorious coalitions grew. The probability of introducing new tariffs and signing trade agreements increased when the longevity of political leaders started becoming reliant on the aid of larger victorious coalitions.
Studies show that democratic leaders signed more trade agreements with each other compared to undemocratic counterparts.