Question

Which best describes why countries establish limits on trade? Check all that apply.

Answer 1

Answer:

B) to restrict foreign influence in a sector

C) to restrict importation of a foreign good

D) to raise the price of foreign goods

E) to punish other countries

Explanation:

It is B, because a country looks after it's own citizens first, not the world. To do so, the government must be able to provide what it can to keep the GDP & economy growing, which also means keeping jobs in the country.

It is C, because the country generally wants to promote their own countries products to help stimulate the economy. If there is a large influx of foreign goods, the money would essentially "leak" out of the economy.

It is D, because when you are limiting goods, most of the time you are imposing tariffs and taxes on foreign goods. Because companies need a profit, they would have to raise the price to keep to what their profits want.

It is E, especially for the US, when they impose tariffs on countries who do not obey what the US wants. This works effectively, because of the US's role in the world.

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