Question

Identify the trade regulation concept described in each scenario.

Answer 1

1. Free trade, which is the capitalist economy model,in an increasingly interdependent economy, calls for the raising of all trade regulations.

2.protectionism policies ( often used by communist nations like china countries protect some parts of the economies than others)

3.trade wars like those taking place between the usa and China

Answer 2

Answer:

1.Country A and country B want to develop

their respective export markets. Both

countries have highly developed agricultural,

industrial, and service sectors. The countries

decide to initially lower trade barriers and

eventually remove them completely. = Free Trade

2.Country A has an agrarian economy with an

emerging industrial sector. To allow domestic

industries to grow, country A applies quotas

on all industrial products except those that

are used as resources. = Protectionism

3. Country A passes an economic policy that

will indirectly give its own companies an

advantage over country B’s companies.

Country B alleges that the policy violates

the countries’ trade agreement and

imposes retaliatory tariffs. = Trade War

Explanation: