Countries create quotas and tariffs in order to increase the volume of trade with their neighbors

Question

Amiah Winters

Social Studies

3 March, 03:17

Countries create quotas and tariffs in order to increase the volume of trade with their neighbors

+3

Answers (2)

Know the Answer?

Swanson · Answer 1

False

Explanation:

Rather than increasing trade volumes, quotas and tariffs actually decrease trade volumes. When countries place these restrictions, other countries are less likely to export goods to them. This is called protectionism.

Ireland Schaefer · Answer 2

False

Explanation:

Tariffs actually don't make countries want to trade with each other, just less because Tariffs are basically taxes. However they are good for one thing as it encourages production and reduces the trade deficit