Governments often pursue policies that promote exports while limiting imports. What are some of those policies? Does this make sense? What kinds of problems can policies cause for companies in these countries?
One of the main policies when limiting imports are called import quotas. Import quotas are designed to limit the imports from various countries. This reduces competition from countries. If the domestic market is heavy with domestic made shoes and the imports the country receives have imports consisting of many shoe shipments, by placing an import quota on the shoes they can receive, the citizens will be more encouraged to buy the domestic made shoes, which keeps the domestic shoe manufacturers in business. This prevents other ...
This solution discusses government policies that promote exports and limit imports and discusses the advantages, disadvantages, and problems that these policies present.