Question

Why would countries be willing to place barriers on trade? Explain two factors that might encourage a country to place quotas and tariffs on imported goods.

Answer 1

Answer:

Countries might create quotas, tariffs, and other trade barriers to protect their own industries. A country may realize that an important industry is struggling because foreign competitors can produce goods more cheaply for import. These industries may lose employees or hurt the country's economy.

To protect its local industries and jobs. Placing trade barriers restricts cheaper goods and service that may out-compete those of the local market if allowed to freely compete in the local market. ... Trade barrier and tariffs are also used as a form of diplomacy.