6
QuizMultiple Choice

Trade and Development — Test

Question 6 • Economics and Personal Finance

Which best describes why countries establish limits on international trade? Choose three correct answers.

Answer
A
to restrict importation of a foreign good
B
to force domestic industries to sell higher quality goods
C
to restrict foreign influence in a sector
D
to punish other countries
E
to lower the price of foreign goods

Explanation

Countries may use trade limits as a way to punish another country, such as through sanctions. They may also restrict imports to protect domestic producers or limit foreign influence in a particular sector. Lowering the price of foreign goods is not a typical reason for trade limits, and forcing domestic industries to improve quality is not their main purpose.

AI-written and checked against the verified answer.

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