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3 years ago

What is “restricted trade?”

2 answers:

7 0

A trade restriction is an artificial restriction on the trade of goods and/or services between two or more countries. It is the byproduct of protectionism.

Zepler [3.9K]3 years ago

6 0

Explanation:

Trade restrictions are typically undertaken in an effort to protect companies and workers in the home economy from the competition by foreign firms. A protectionist policy is one in which a country restricts the importation of goods and services produced in foreign countries.

The main types of trade restrictions are tariffs, quotas, embargoes, licensing requirements, standards, and subsidies. A tariff is a tax put on goods imported from abroad. The effect of a tariff is to raise the price of the imported product. Revenue tariffs are put in place to raise money for the government.

Hope this helps you with future hw & exams!

P.S Fun fact!~~~

The strongest muscle in the body is the tongue!

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