Economics Trade Barriers Questions
Trade wars refer to a situation where countries impose tariffs, quotas, or other trade barriers on each other in an attempt to protect their domestic industries and gain a competitive advantage. These trade barriers can include increased import duties, restrictions on imports, or subsidies to domestic industries. Trade wars often escalate as countries retaliate against each other by imposing further trade barriers, leading to a cycle of protectionism and reduced international trade. The primary objective of trade wars is to promote domestic industries and protect jobs, but they can have negative consequences such as higher prices for consumers, reduced global economic growth, and strained diplomatic relations between countries.