Sovi.AI - AI Math Tutor

Scan to solve math questions

QUESTION IMAGE

which best describes why countries establish limits on international tr…

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:

Brief Explanations
  1. "To restrict foreign influence in a sector": Trade limits can protect domestic sectors from foreign dominance, e.g., protecting a nascent industry.
  2. "To restrict importation of a foreign good": Tariffs/quotas limit imports, often to protect domestic producers or for safety/regulatory reasons.
  3. "To punish other countries": Trade sanctions are used to penalize countries for political/economic disputes.

"To force domestic industries to sell higher quality goods" is incorrect (quality is not directly enforced by trade limits). "To lower the price of foreign goods" is incorrect (trade limits like tariffs usually increase foreign good prices).

Answer:

B. to restrict foreign influence in a sector, C. to restrict importation of a foreign good, E. to punish other countries