Wednesday, April 17

Tag: Strategic Trade Policy

What Restriction Would the Government Impose in a Closed Economy
Business

What Restriction Would the Government Impose in a Closed Economy

What restrictions would the government impose in a closed economy? Like tariffs and quotas. The government would have to forbid commerce with all other economies to establish a truly closed economy, even though these measures would block or slow down trade with a specific nation. An economy that is "close" does not engage in international trade, which means it does not import or export products and services to or from other nations. In this scenario, all commodities and services are generate inside the confines of a particular economy. What Restriction Would the Government Impose in a Close Economy Despite the compelling theoretical justification for unrestricted global commerce, every government has put up at least some trade restrictions. Trade restrictions are often implement to sh...