Do governments have legitimate reasons to impose restrictions on free trade?

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Prepare for your UCF GEB3375 Intro to International Business Exam 1. Utilize flashcards and multiple choice questions with explanations to ace your test. Get fully equipped!

Governments may impose restrictions on free trade for several legitimate reasons, and health and safety concerns are among the most significant. For instance, a government might restrict imports of certain goods that may pose health risks to its citizens, such as contaminated food products or hazardous materials. These restrictions are aimed at protecting public health, ensuring the safety of consumers, and maintaining environmental standards.

In addition to health and safety, governments might implement trade restrictions to safeguard national security, protect infant industries, or defend against unfair trade practices. By placing regulations on foreign products, a government can promote domestic industries and ensure that local businesses have a fair chance to compete. While free trade often encourages efficiency and growth, there are valid scenarios where limitations become necessary to address public welfare and security concerns. Thus, the answer reflects a critical aspect of international trade policy that balances economic interests with the safety and well-being of the population.