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Describe at least two (2) problems that can come from a government instituting trade restrictions.

a. Reduced international trade and economic growth
b. Increased prices for consumers and reduced product choices
c. Improved relations with trading partners
d. Enhanced domestic production and job creation

asked
User AishApp
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1 Answer

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Final answer:

Two problems that can arise from government trade restrictions include reduced international trade and economic growth, as well as increased prices for consumers and reduced product choices.

Step-by-step explanation:

One problem that can come from a government instituting trade restrictions is reduced international trade and economic growth. When a government places limitations on imports through tariffs, import quotas, or nontariff barriers, it reduces the amount of trade that can occur with other countries. This can lead to a decrease in economic growth as businesses have less access to international markets and consumers have fewer choices in terms of products.

Another problem is increased prices for consumers and reduced product choices. Trade restrictions raise the price of the protected goods in the domestic market, which causes domestic consumers to pay more. Moreover, these restrictions limit the variety of products available to consumers, as they reduce the options for imported goods.

answered
User KristofferR
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