Question

A trade war is a situation in which ______.

A. a country purposely prices its exports low to make up for a trade deficit
B. certain countries are purposely excluded from trade agreements
C. countries try to damage each other's trade by imposing tariffs and quotas
D. member countries of a trade agreement refuse to trade with one another

Answer 1

A trade war occurs when countries harm each other's trade through tariffs and quotas. The WTO works to reduce such barriers to promote global trade.

Step-by-step explanation:

A trade war is a situation in which countries try to damage each other's trade by imposing tariffs and quotas. Trade wars are characterized by increasing protectionism, where countries erect barriers like tariffs to harm each other's trade prospects; this can happen when nations wish to protect their domestic industries or retaliate against other nations' trade practices.

The World Trade Organization (WTO) endeavours to reduce such barriers and promotes negotiation rounds, such as the Doha Round, to encourage trade and economic growth globally by decreasing protectionist measures.

A trade war is a situation in which countries try to damage each other's trade by imposing tariffs and quotas. Tariffs are taxes that governments place on imported goods, making them more expensive and less competitive in the domestic market.

By imposing tariffs and quotas, countries aim to protect their own industries and reduce imports from other countries.