why did trade wars take place between european companies and what was the results?
Answers
Answer:
A trade war is an economic conflict resulting from extreme protectionism in which states raise or create tariffs or other trade barriers against each other in response to trade barriers created by the other party. Increased protection causes both nations' output compositions to move towards their autarky position
Explanation:
PART OF
Global Trade Guide
ECONOMY ECONOMICS
Trade War
By
JAMES CHEN
Updated Feb 11, 2021
TABLE OF CONTENTS
EXPAND
What Is a Trade War?
Understanding a Trade War
History of Trade Wars
Advantages and Disadvantages of a Trade War
Real World Example
What Is a Trade War?
A trade war happens when one country retaliates against another by raising import tariffs or placing other restrictions on the other country's imports.
Trade wars can commence if one country perceives that a competitor nation has unfair trading practices. Domestic trade unions or industry lobbyists can pressure politicians to make imported goods less attractive to consumers, pushing international policy toward a trade war. Also, trade wars are often a result of a misunderstanding of the widespread benefits of free trade.