Q Most nations today claim to be in favor of free trade, even though most of them continue to impose many restrictions on international trade.
Explain why nations impose trade restrictions if free trade is the best policy.
In current time, many nations are in the favor of the free trade. But in the real life, countries impose the trade barriers in the international trade to protect the domestic infant industries. Like every field, there is some difference between the theoretical approach and the practical approach of the international trade. For an example, it is a well-known fact that the government intervention causes the market failure, though in most of the countries around the world government intervenes in the market to protect the consumers. Just like that, the trade barriers have been imposed to protect the domestic producers, even though the free trade makes