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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.
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There are different reasons for state trading. Important reasons are given below. (i) State may directly buy the goods required by the various government departments and agencie
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