This is Why Government Intervene The International Trade

The role of government is quite significant to intervene the trade in order to cope with inefficient activities in the economy. Inefficient activities include unequal distribution.

1. The function of the government to maintain internal security and defense. In order for citizens to conduct business activities with a calm and comfortable.
2. The function of the government to administer the judiciary, so that every citizen has the same rights and obligations.
3. The function of the government to provide goods not provided, so that citizens get easiness in running business activities. 

Despite all, the reason of government intervention can be classify as three main parts:

1. To correct market failures. Market is an unexpected things in our life; we cannot handle the market as it supposed to be. Therefore, to prevent any massive failure in the economic system, the role of government is really needed. There are several example of market failure such as immobility, public goods, demerit goods, merit goods, imperfect information, high relative poverty, and monopoly power in a market. Those market failure can bring some negative impacts such as structural unemployment, failure of market to provide pure public goods, free rider problem, over consumption of products with negative externalizes, consequences for consumers from poor choices, low income families suffer social exclusion, negative externalizes, higher prices for consumers, cause loss of allocate efficiency
2. To achieve a more equitable distribution of income and wealth. The reason of the government is that it is the power of each human being to gain more money to fulfill their need. Therefore, the government needs to distribute equal wealth especially to those people who live under economic condition.
3. To maximize the social prosperity. The role of government to intervene the trade is to boost the performance of the economy. Since, they will be able to compete with other countries from all over the world for the sake of good economic performance in the world. The role of government can also improve social welfare involving public welfare. Such as improving the function of public facilities. Thus, the government can utilize these facilities equally.
4. Socio-Economic Factors. Market interventions for socio-economic including labor laws to protect certain segments of the population and the setting up of certain products to ensure the health and well-being of consumers.