The term beggar-thy-neighbor policy is a kind of international trade policy that benefits the country implementing it while harming neighboring states or trading partners of this country. Originally, these policies were a political solution to the problems of domestic depression and high unemployment rates. The basic idea of ​​this policy is to increase the country's demand for export products while reducing dependence on foreign imports. This means that domestic consumption will increase, as opposed to import consumption. This was usually some sort of trade barrier; tariffs or quotas, or competitive devaluation, in order to lower the price of exports and increase employment and the price of imports. An import duty will benefit the country because it increases the country's terms of trade. And so, this can be seen as a beggar-thy-neighbour policy. Currency devaluations are considered a beggar-thy-neighbor measure since they only aim to boost the country's exports by making them cheaper to buy and thus increasing the country's global market share. The country's neighbors or trading partners who practice beggar-thy-neighbor devaluation may also respond by devaluing their currency. This type of situation is known as competitive devaluation, which is an example of a beggar-thy-neighbor policy. Second, wage repression policies could be considered beggar-thy-neighbor if they primarily aim to increase a country's competitiveness in the international market, thereby incentivizing its competitors to also repress wages. Say no to plagiarism. Get a tailor-made essay on "Why violent video games should not be banned"?Get the original essayThe political term beggar-for-self was first used by the Scottish philosopher and economist Adam Smith, considered the founder of the modern economy. economy. He used this term in his book The Wealth of Nations, in a critique of mercantilism which was the dominant economic system in Europe from the 16th to the 18th century and of protectionist trade policies. According to Smith, the doctrine of mercantilism taught that nations should beg all their neighbors to maximize economic gains. He believed that the long-term gains from free trade would far outweigh any short-term benefits that might accrue from the mercantilists' protectionist policies. He said free trade would lead to long-term economic growth that would not be a zero-sum game, but would actually increase the wealth of all nations. Many countries have resorted to beggar-thy-neighbor policies throughout their history. They were very popular during the Great Depression of the 1930s, when countries were vigorously trying to keep their domestic industries from going bankrupt. They joined the gold standard, pegging the value of their currency to that of gold, and engaged in a series of competitive devaluations. Additionally, many countries, including the United States, have imposed protective import tariffs. The beggar-thy-neighbor policy in the United States caused other countries to follow suit, leading to a massive decrease in international trade. After World War II, Japan adopted a model of economic development that relied largely on protecting its domestic industries from foreign competition until they were ready to compete with foreign companies. And, during the post-Cold War period, China has employed a similar set of policies to limit the influence..