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Disadvantages of State Trading
State trading has several disadvantages.
(i) State trading is often afflicted by the corruption and inefficiency usually associated with the public sector.
(ii) It is alleged that state trading promotes bilateral trade as against multilateral trade and obstructs free trade.
(iii) State trading eliminates or reduces competition and entrepreneurship.
Why do demand curves generally slope downward? The demand curve slopes downward because in general, the higher the price of the good, the fewer people will need to buy it.
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