February 2016
Beginner to intermediate
500 pages
33h 40m
English
Although firms and consumers in one country want to trade with people in other countries, governments often prevent free trade between nations. A government may prevent trade so as to protect domestic suppliers from competition by foreign firms. For example, a government may ban trade or set a quota that limits the amount of a good that can be imported. Alternatively, a government may tax imports or exports to raise government revenue. Commonly, governments collect an import tariff (sometimes called a duty), which is a tax on only imported items.
Historically, governments have concentrated on restricting imports rather than limiting or encouraging exports. Consequently, we focus on the effects of a country’s ...