Get premium membership and access questions with answers, video lessons as well as revision papers.

Why may the government impose trade restrictions?

      

Give the reasons why the government may impose trade restrictions.

  

Answers


Maurice
(i) Protection of cultural and social values.
The borrowed cultures may adversely affect the borrowers culture. Trade restrictions may assist in curtailing the importation of harmful cultures.

(ii) Promoting self-reliance-trade restrictions encourages locals to produce more.

(iii) Expanding market for local products. When trade restrictions have been instituted, it becomes very hard for outsiders to supply their products to the local market.

(iv) To protect the local infant industries. Young growing industries are not able to favorably compete with established ones in the same area of production.

(v) Protection of strategic industries. Some industries are extremely important to country in that country cannot do without them for example food or security.

(vi) Creation and protection of employment.
The new industries create more employment opportunities.

(vii) Prevention of dumping. Dumping may create unfair competition in the local market.

(viii) Presentation of balance trade. When the value of export is less than the value of imports the results is a balance of trade deficit.

maurice.mutuku answered the question on July 1, 2017 at 14:08


Next: What remote external factors influence business operations?
Previous: In the last few months, the supply of mangoes in Makueni county was on increase. What factors may have attributed to this?

View More Business Studies Questions and Answers | Return to Questions Index


Learn High School English on YouTube

Related Questions