How can governments intervene in trade?
A) by producing cheaper products
B) by helping reduce economic uncertainty
C) by not buying products from competing countries
D) all of the above

Question

Quizplus · Accepted Answer

Governments can intervene in trade by reducing economic uncertainty through policies such as stabilizing exchange rates and providing insurance for exporters. This helps boost confidence in the economy and encourages trade. Producing cheaper products (choice A) can also be a strategy, but it may not always be feasible or sustainable. Not buying products from competing countries (choice C) can lead to retaliatory measures and damage international trade relationships.

How Can Governments Intervene in Trade