Answer:
Step-by-step explanation:
Pros of monetary barriers across nations include:
Protection of domestic industries: Monetary barriers, such as tariffs and import quotas, can protect domestic industries by making it more difficult for foreign goods to compete with domestic products. This can help to preserve jobs and stimulate economic growth.
Revenue generation: Monetary barriers can also generate revenue for the government by imposing taxes on imported goods.
Control of inflation: Monetary barriers can also help to control inflation by making foreign goods more expensive, which can help to keep domestic prices stable.
Cons of monetary barriers across nations include:
The increased cost of goods: Monetary barriers can make imported goods more expensive, which can lead to higher prices for consumers.
Reduced trade: Monetary barriers can also discourage trade between nations and lead to reduced economic growth.
Retaliation: Other nations may respond to monetary barriers by implementing their own barriers, leading to a trade war and further reducing trade and economic growth.
Inefficiency: Monetary barriers can lead to inefficiencies by preventing the most efficient producers from supplying goods to the market, leading to higher prices and reduced trade.
Diplomatic tension: Monetary barriers can also lead to diplomatic tension and strained relations between nations.