a) Reasons for restrictions on free trade

• What is the primary goal of free trade?

  To maximize global output based on comparative advantage
• Why do countries seek to limit free trade?

  To protect themselves from certain outcomes
• What is protectionism and its forms?

  Protectionism is the practice of limiting free trade to protect a country's economy.

  Forms include:

  • Limiting imports
  • Limiting exports
  • Boosting exports
  • Implementing administrative barriers