How is trade conducted in a command economy?

In a command economy, trade is conducted through a centralized planning system where the government controls and directs all economic activities. The government determines what goods and services are produced, how they are produced, and who receives them.

In such an economy, trade is typically carried out through state-owned enterprises or government agencies. The government decides which goods and services are to be imported or exported, and it sets the terms and conditions for these transactions. The prices of goods and services are often fixed by the government, and trade is regulated to ensure that it aligns with the overall economic goals and priorities set by the government.

Additionally, in a command economy, trade is often limited and restricted. The government may impose quotas or restrictions on imports and exports to protect domestic industries or maintain self-sufficiency in certain sectors. The focus is usually on meeting the needs of the population rather than maximizing profits or promoting competition.

Overall, trade in a command economy is heavily influenced and controlled by the government, with the aim of achieving specific economic and social objectives as determined by the central planning authority.