{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

It may seem odd - Itmayseemodd,.Whymighta ? industries,

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
It may seem odd, but governments often step in to restrict trade. Why might a  government want to restrict trade? If domestic industries cannot compete against foreign  industries, the government will restrict trade to help the domestic industries develop.  Governments may also restrict trade to foster business at home rather than encouraging  business to move out of the country. These protectionist policies encourage prices to  stay high and help domestic industries to develop.  Trade Interferences  Governments three primary means to restrict trade: quota systems; tariffs; and  subsidies.  A quota system imposes restrictions on the specific number of goods imported into a  country. Quota systems allow governments to control the quantity of imports to help  protect domestic industries.  Tariffs are fees paid on imported goods. Tariffs increase the price that consumers pay 
Image of page 1
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern