The two main reasons why international trade is restricted is because restricting trade means that governments can ________ and because domestic businesses ________.

Question

Quizplus · Accepted Answer

Restricting trade allows governments to obtain revenue through tariffs, quotas, and other trade barriers. Domestic businesses may also push for trade restrictions in order to engage in rent seeking behavior, where they seek to use government regulations and subsidies to gain an advantage over their competitors.

The Two Main Reasons Why International Trade Is Restricted Is