many country have been progressively removing restrictions
Answers
Answer:
Economists generally agree that trade barriers are detrimental and decrease overall economic efficiency; this can be explained by the theory of comparative advantage.
Most trade barriers work on the same principle: the imposition of some sort of cost (money, time, bureaucracy, quota) on trade that raises the price or availability of the traded products. If two or more nations repeatedly use trade barriers against each other, then a trade war results. Barriers take the form of tariffs (which impose a financial burden on imports) and non-tariff barriers to trade (which uses other overt and covert means to restrict imports and occasionally exports).
In theory, free trade involves the removal of all such barriers, except perhaps those considered necessary for health or national security. In practice, however, even those countries promoting free trade heavily subsidize certain industries, such as agriculture and steel.
Answer:
In theory, free trade entails the elimination of all such restrictions, with the possible exception of those deemed essential for public safety or health.
Explanation:
Most economists concur that trade restrictions are bad for the economy as a whole and reduce economic efficiency; this is explained by the idea of comparative advantage.
The majority of trade barriers operate under the same general premise: they impose some type of cost (money, time, bureaucracy, quota) on commerce that drives up the cost or supply of the traded goods. A trade war happens when two or more countries deploy trade barriers against one another repeatedly. Tariffs (which cost money to import) and non-tariff trade barriers are two examples of obstacles (which uses other overt and covert means to restrict imports and occasionally exports).
In theory, free trade entails the elimination of all such restrictions, with the possible exception of those deemed essential for public safety or health.
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