The Ricardian model of international trade demonstrates that trade can be mutually beneficial. Why, then, do governments restrict imports of some goods?" The Ricardian model is often incorrect in its prediction that trade can be mutually beneficial. Import restrictions are the result of trade wars between hostile countries. Trade can have substantial effects on a country's distribution of income. Imports are only restricted when foreign-made goods do not meet domestic standards of quality. Restrictions on imports are intended to benefit domestic consumers.
+5
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “The Ricardian model of international trade demonstrates that trade can be mutually beneficial. Why, then, do governments restrict imports ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Home » Business » The Ricardian model of international trade demonstrates that trade can be mutually beneficial. Why, then, do governments restrict imports of some goods?" The Ricardian model is often incorrect in its prediction that trade can be mutually beneficial.