Why might a recession that impacts multiple regions of the w
Why might a recession that impacts multiple regions of the world encourage some countries to levy restrictions on trade?
Solution
Restrictions or protective tariffs on trade are often employed to stimulate industries in countries beset by recession or depression. These measures may be helpful for emergent industries in the developing countries. It also serves as a means of fostering self-sufficiency in defense industries. Import quotas set an absolute limit on the amount of certain goods that can be imported into a country. Placing restrictions on international trade is mainly to protect domestic industries and dissuade customers willing to pay a higher price for an imported good.
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