Question

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

A). to force domestic industries to compete
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

Answer 1

Countries set trade restrictions to protect domestic industries from competition, restrict foreign influence, and raise the price of imported goods, sometimes as a political tool to punish other nations.

Thus the corret opction is:a.b.c.d

Step-by-step explanation:

Countries establish limits on trade primarily for a few reasons, which are:

• To protect domestic industries and jobs from foreign competition by making foreign products less competitive through tariffs, import quotas, and non-tariff barriers.
• To restrict foreign influence in a sector, particularly in industries deemed essential for national security or cultural identity.
• To raise the price of foreign goods domestically, which in turn may encourage the purchase of domestic products.
• Sometimes trade restrictions are used to punish other countries, but this is generally considered a diplomatic or political tool rather than an economic one.