List some major reasons why countries often limit trade.
- List some major reasons why countries often limit trade.
Homework Answers
1. The foremost reason is to protect domestic producers from price crash. By limiting the trade in terms of taxes, quota, dumping, revenue and protective tariffs, the number of quantities being imported declines so that domestic producers can continue to do business
2. Also, the governments sometimes avoids exports so that it would help consumers from paying high prices because of shortages created by exports
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