Final answer:
Political factors, including the size of the economy, geographic proximity, and trade history, strongly influence international trade patterns.
Domestic and international politics shape trade policies, and international agreements can curb protectionist pressures.
Governments use multiple channels to establish trade policies, with international commitments often serving as a constraint against domestic protectionism.
Step-by-step explanation:
Political factors play a pivotal role in shaping patterns of international trade. The size of a country's economy, its geographic location, and the history of trade are key determinants.
For example, large economies like the United States may be able to sustain a lot of trade within its own borders, whereas smaller economies such as Sweden may rely more on imports and exports relative to their gross domestic product (GDP).
Proximity to other nations also enhances trade due to reduced transportation and communication costs. Furthermore, countries with a longstanding history of trade are often more engaged in international exchanges.
Political factors unfold at different levels, including domestic politics, international pressures, and the structure of international agreements.
Domestically, the political system and level of economic development influence policy decisions. Internationally, globalization trends and the push for trade liberalization since the 1990s have had a significant impact.
Governments enact trade policy through various means such as administrative agencies, legislative laws, regional negotiations, and global discussions through the World Trade Organization (WTO).
The decline in trade barriers during the latter half of the twentieth century reflects these dynamics. International agreements offer protection against domestic special interests and pressure politicians to establish free trade policies.
By doing so, politicians can claim that their hands are tied by international commitments when domestic industries seek protectionism.