Are restraints on free trade&price controls similar?
Free trade is associated with international, competitive markets. Government authorities often legislate free trade limitations to protect domestic industry. Price controls restrain free trade.IdentificationPure free trade eliminates government intervention and allows the marketplace to set prices. Prices naturally meet at equilibrium. At this point, suppliers earn adequate profits at prices that consumers are willing to pay. Price controls, however, restrain free trade by establishing price points for certain goods.FeaturesPrice controls may be instituted with tariffs upon imported goods or with quotas limiting the amount of foreign products entering a particular nation. Price controls are generally installed to protect an industry associated with national pride. In the United States, foreign automakers are often subject to high import duties to protect U.S. automakers.ConsiderationsPolitical implications for free trade restraints vary according to the general economy. For example, st
