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Which best describes why countries establish limits on trade? Check all that apply.

A) to force domestic industries to compete
B) to restrict foreign influence in a sector
C) to restrict importation of a foreign good
D) to raise the price of foreign goods
E) to punish other countries



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The answers are:

B: to restrict foreign influence in a sector

C: to restrict importation of a foreign good

E: to punish other countries

The reasons that countries establish limits on trade is:

  • to restrict foreign influence in a sector
  • to restrict importation of a foreign good.

Why do  countries establish limits on trade?

The different ways by which countries establish limits on trade include:

  1. Tariffs: this is a form of tax placed on imported goods.
  2. Quota: this is when a limit is placed on the number of goods that can be imported into a country
  3. Subsidy: this is when the government reduces the cost of local production.

Limits on trade increase the price of importing the good and this discourages importation and encourages local production.

To learn more about imports, please check: https://brainly.com/question/26497713

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