QUESTION IMAGE
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
Brief Explanations
- Restricting foreign influence in a sector (e.g., protecting strategic industries like defense) is a common trade limit goal.
- Restricting importation of foreign goods directly controls trade flows, often to shield domestic industries.
- Punishing other countries (via sanctions or tariffs) is a policy tool using trade limits for political/economic retaliation. The other options are incorrect: forcing higher quality goods is not a primary trade limit aim, and lowering foreign good prices contradicts trade restrictions (which typically raise foreign good costs).
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B. to restrict foreign influence in a sector, C. to restrict importation of a foreign good, E. to punish other countries