Question

How do policy makers affect trade (4 things)? A. By setting import/export taxes and tariffs

B. By regulating international trade agreements
C. By influencing currency exchange rates
D. By promoting domestic industries through subsidies

Answer 1

Policy makers influence trade through import/export taxes and tariffs, international trade agreements, currency exchange rates, and subsidies for domestic industries.

Step-by-step explanation:

Policy makers affect trade in several ways:

• By setting import/export taxes and tariffs, which can raise the cost of foreign goods and protect domestic industries.
• By regulating international trade agreements, which can either increase trade by reducing barriers or restrict it by implementing protective measures for domestic industries.
• By influencing currency exchange rates, which can make exports cheaper or imports more expensive, thus affecting trade balances.
• By promoting domestic industries through subsidies, which can lower the production costs for these industries and make them more competitive internationally.