Nations use
trade restrictions as a matter of both foreign and economic policy. A nation can blockade
another nation in time of warthis restricts all trade going in and out of a country. A nation
can also use trade sanctions in order to punish certain industries. One example of this is when
the United States would not sell high-octane fuel to Japan during World War II.
A nation can also use embargoes to limit trade. One key example of this happened when
President Jefferson levied an embargo against belligerents during his administration. This
embargo backfired, as key European nations also did not buy American goods, thus crippling the
US economy.
Tariffs are a key part of economic policy. Tariffs are taxes
placed on imports. They are used to protect industries in the home country. Tariffs often become
political issues, as interest groups want their industries protected. When another nation issues
tariffs in retaliation, a trade war results. Tariffs also increase the price of...
No comments:
Post a Comment