Regulating Trade
Definition
This refers to the control and management of trade activities by a governing body, often through laws and regulations. It includes setting tariffs, quotas, or restrictions on imports and exports.
Analogy
Think of regulating trade like being a referee in a soccer game. The referee sets the rules for the game (trade policies), ensures everyone follows them (enforces regulations), and penalizes players who break them (imposes tariffs or sanctions).
Related terms
Tariffs: These are taxes imposed on imported goods, usually to protect domestic industries from foreign competition.
Quotas: These are limits set on the amount of certain products that can be imported or exported.
Trade Barriers: These are measures that governments or public authorities introduce to make imported goods or services less competitive than locally produced goods and services.
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