Because trade policies do not affect a country's overall trade balance, they also do not affect specific firms, industries and foreign countries.

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Trade policies can have a significant impact on specific firms and industries, as well as on the trading relationships between countries. For example, imposing tariffs on imports can make it more difficult and expensive for foreign firms to sell their products in a particular market, while subsidies can make it easier and less expensive for domestic firms to sell their products abroad. These policies can also lead to retaliation from other countries, affecting their own industries and trade relationships. Overall, trade policies can have far-reaching effects on the economy, beyond just the overall trade balance.

Because Trade Policies Do Not Affect a Country's Overall Trade