Purpose of the study: The aim of this study is to discuss the role of government on politics and trade. Political economy brings the production and exchange of goods and services that are parallel with the country’s law. The government plays a massive role because if it is not effective then the trade profitability will be decreased. Thus, political intervention is needed to protect the development of economy, sovereignty, and citizens of the state.
Methodology: The data for this study were obtained from existing literatures on the role of government on politics and international trade. The methodology relied heavily on existing literatures on the subject being dealt with.
Result: Political economy on international trade enables the cheap production and import of goods and services in the country. This is because international trade does not limit to commodities as they are produced by only some countries. Finally, political economy can be surveyed by comprehensively gathering political aspects, such as national policies and their administration, and this will take a basic position on the existing and ideal financial models, organizations, and related policies which are being formulated by micro- and macro-economic agendas.
Implication: The interest for the political economy of trade arrangement is the complementary impact of global exchange on local and worldwide legislative issues.