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reply to Trade restrictions do evoke retaliation by trade partners. This would affect the gains from trade by reducing the amount of goods and services

reply to Trade restrictions do evoke retaliation by trade partners. This would affect the gains from trade by reducing the amount of goods and services obtained and would also cause an increase in prices (York, 2018). This would also lead to a higher unemployment rate and a decrease in GDP. Trade allows nations to produce goods at a lower opportunity cost in which they have a comparative advantage in (York, 2018). In other words, trade allows nations to produce more while spending less. Trade restrictions such as quotas would cause demand for substitute products to increase as well. The nature of the WTO claim is to handle trade disputes among nations and provide the proper policies to promote international trade (Miller, 2021). WTO promotes less trade restrictions but includes policies or rules that could attract other nations into the trading world. When trade disputes occur, this could impede free trade by limiting goods and services. The action by the defendant would delay the free trade and would definitely deserve scrutiny. Since the defendant won't be able to trade for a certain amount of time, the nation that imposed the trade restriction

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