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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.
(a) Suppose Scientists discover that eating soybeans prevents cancer and heart disease.
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