Question

which best describes why countries establish limits on international trade? choose three answers
□ to force domestic industries to sell higher quality goods
□ to restrict foreign influence in a sector
□ to restrict importation of a foreign good
□ to lower the price of foreign goods
□ to punish other countries

Explanation:

• To restrict foreign influence in a sector: Trade limits can protect domestic industries from foreign competition, reducing foreign control or influence. For example, a country may limit imports in a strategic sector like defense - related manufacturing to ensure domestic production capabilities.
• To restrict importation of a foreign good: This is a direct form of trade limit. A country might restrict the import of a particular good if it wants to support domestic producers of that good. For instance, if a domestic steel industry is struggling, the country may limit steel imports.
• To punish other countries: Trade limits can be used as a political tool. Sanctions, which are a form of trade limit, are often imposed to punish a country for actions such as violating international law, human rights abuses, etc. For example, economic sanctions against a country that has invaded another country.

The option "to force domestic industries to sell higher - quality goods" is not a common reason for trade limits. Usually, trade limits protect domestic industries from competition rather than directly forcing quality improvement. The option "to lower the price of foreign goods" is incorrect because trade limits (such as tariffs) usually increase the price of foreign goods in the domestic market.

Answer:

• to restrict foreign influence in a sector
• to restrict importation of a foreign good
• to punish other countries