Economics Balance Of Trade Questions
Trade barriers can have a significant impact on the balance of trade. When trade barriers, such as tariffs or quotas, are imposed by a country, it restricts the flow of imports and exports. This can lead to a decrease in imports and an increase in exports, resulting in a trade surplus. On the other hand, trade barriers can also lead to a decrease in exports and an increase in imports, resulting in a trade deficit. Overall, trade barriers can disrupt the balance of trade by altering the flow of goods and services between countries.