What might a country hope to achieve by implementing trade barriers like quotas?

Study for the Arizona State University MGT302 International Business Exam. Prepare with flashcards and multiple choice questions, featuring hints and explanations for each. Get exam-ready with ease!

A country may implement trade barriers such as quotas primarily to maintain a competitive edge in certain sectors. By imposing quotas, which limit the quantity of a good that can be imported, a nation can protect its domestic industries from foreign competition. This protection allows local businesses to thrive by reducing the influx of cheaper or more advanced foreign products. Consequently, domestic producers can secure a larger share of the market and may also invest more in innovation and production capacities, further strengthening their competitive position.

Additionally, maintaining that competitive edge can lead to job preservation and economic stability within those sectors, fostering a better environment for growth and development. While objectives like controlling food prices and preserving national security might influence trade policy decisions, the direct focus of quotas is more aligned with shielding and promoting domestic industries to ensure their survival and competitiveness in the global marketplace.

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