Economics Command Economy Questions
In a command economy, the government has complete control over the allocation of resources and production decisions. Therefore, it also has control over international trade. The government determines what goods and services are imported and exported, as well as the quantity and terms of trade. It may impose restrictions, such as tariffs or quotas, on imports and exports to protect domestic industries or regulate the flow of goods and services. The government may also prioritize certain industries or sectors for international trade, based on its economic and political objectives. Overall, in a command economy, international trade is managed and controlled by the government to align with its economic goals and policies.