Why do countries provide financial incentives? Financial incentives act as trade barriers. Financial incentives limit imports. Financial incentives set standards. Financial incentives restrict all trade.

When countries provide financial incentives, they are promoting their domestic production by making it more efficient and cheaper, moreover, it is a way of protecting the country's industry.

Besides, financial incentives play a crucial role in acting as trade barriers, because it is a way of limiting foreign investment.

ProfChris1 ProfChris1 · Answer 2 · 2022-04-20T19:02:41+02:00

We can see that countries actually provide financial incentives for the following reason: A. Financial incentives act as trade barriers.

What is financial incentive?

Financial incentive actually means the monetary benefit that is given in order to encourage actions that will not likely be taken. We can deduce that financial incentives actually influence and motivates actions.

We see that countries actually provide financial incentives in order to act as trade barriers.

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