Suppose all countries try to expand their exports and restrict their imports through the use of export subsidies and import tariffs.The net effect will probably be

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When all countries try to expand their exports and restrict their imports through export subsidies and import tariffs, it will lead to a decrease in the volume of trade. This is because each country will try to protect their domestic producers by discouraging imports and encouraging exports, which will lead to a decrease in the international trade. Moreover, this will also lead to a decline in the average living standards in each country as the cost of goods and services will increase due to increased tariffs and subsidies. Finally, this will also create inefficiencies in the market, resulting in a decrease in the overall economic welfare.

Suppose All Countries Try to Expand Their Exports and Restrict