In this module, we have outlined government policy toward import tariffs (taxes on imported goods as they enter a country), quotas (a limit on the quantity of a good that can be produced abroad and sold domestically), and restrictions (limitations on the quantity of goods imported/exported to a specific country). Trade can allow countries to use their national resources more efficiently, and it can allow industries and workers to be more productive. Trade may even allow countries to achieve higher living standards, and keep the cost of many everyday products low. Government regulation of trade has had a significant impact not only on global trade flows, but also on economic growth and prosperity. For this reason, it is useful to consider the main ways that governments have tended to regulate trade and, more recently, to deregulate it.
For this discussion activity, respond to the following prompts:
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