When dealing with strategic trade policy,one practical problem for government is the likelihood of retaliation by the foreign government.

Question

Quizplus · Accepted Answer

If a government implements strategic trade policy, such as imposing tariffs or quotas on foreign imports, there is a high chance that the affected foreign government may retaliate by imposing their own tariffs or trade barriers on the government's exports. This can lead to a trade war, which can have negative effects on both countries' economies. Therefore, the likelihood of retaliation is a practical problem that governments have to consider when implementing strategic trade policies.

When Dealing with Strategic Trade Policy,one Practical Problem for Government