Scenario: Badland Joins the World
Badland, a former totalitarian economy and pariah state, is taking steps toward a free market economy. The government wants to encourage trade but also wants to find a balance where local businesses and industries are not destroyed.
-If Badland wants to restrict unwanted trade, which of the following might be appropriate?

Question

Quizplus · Accepted Answer

All the options (tariff, quota, local content requirement, and currency control) are tools that can be used to restrict unwanted trade and protect local industries while transitioning to a free market economy.