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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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Economic Ef ficiency The effort to making products and services in the least costly way without sacrificing excellence.
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