Role of governments in international trade

The governments of different countries play an important role in international trade. These governments are responsible to make trade and corporate laws which govern international trade in terms of exports and imports. Governments of different countries set together to form multinational trade agreements that facilitate the organizations of these countries to do business abroad, in countries with whom the trade agreements are made. With multinational trade agreements, local businesses may feel threatened from the foreign companies as they might take their market share away. Therefore, governments make sure that the trade agreements do not harm the local businesses.