contestada

governments often intervene in international trade and impose quotas to multiple choice shift a nation's production possibilities frontier. increase revenues from export subsidies. protect domestic industries from foreign competition. improve the performance of multinational corporations.

Respuesta :

Governments often intervene in international trade and impose quotas to

  • Protect domestic industries from foreign competition.

Why does the government intervene in international trade?

The main reason why government intervenes in international trade is to ensure that local businesses are not negatively affected by their foreign competition. If the trade between the foreign and international markets is not well controlled, there is every tendency to overshadow local businesses.

However, when the government is able to monitor and curb the excesses of international merchants then they will be able to establish a balance that will help both sides of the divide to win in this case. The role that government plays is a protective one and the local industries and the main subject of interest in this case.

If left uncontrolled, there will be a resultant imbalance that will cause some damage to the economic health of the host country. So, the government's role is necessary and advised.

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