There are a number of ways for governments to restrict trade. Governments can restrict trade through tariffs, quantitative restrictions, import licenses, and other forms of regulation (Frieden 299). Trade is usually restricted for domestic reasons. For many producers, trade may decrease the demand for their domestic products, which could put their profits as well as their job in jeopardy (Frieden 299). When imports are taxed, it causes the domestic producers to also raise the price of their product in order to expand their profit margins. Therefore, in order for governments to protect their own citizens and economy, they put restrictions on trade. Another possible reason for why some states many restrict trade could be to maintain their sovereignty. States may consider it a large risk to continue to allow the products of other states to enter their countries without any restrictions; therefore, restrictions are placed as a means of protecting the
There are a number of ways for governments to restrict trade. Governments can restrict trade through tariffs, quantitative restrictions, import licenses, and other forms of regulation (Frieden 299). Trade is usually restricted for domestic reasons. For many producers, trade may decrease the demand for their domestic products, which could put their profits as well as their job in jeopardy (Frieden 299). When imports are taxed, it causes the domestic producers to also raise the price of their product in order to expand their profit margins. Therefore, in order for governments to protect their own citizens and economy, they put restrictions on trade. Another possible reason for why some states many restrict trade could be to maintain their sovereignty. States may consider it a large risk to continue to allow the products of other states to enter their countries without any restrictions; therefore, restrictions are placed as a means of protecting the