why must old currency be taken out of circulation when new currency is made? the old currency is more valuable than the new currency. the new currency is much more liquid than the old currency. too much currency in an economic system will cause inflation. too much currency in an economic system will create artificial wealth.

Manufacturing and currency trading is a government monopoly.

Economic theory explains that the government needs to control its monetary base so that the economic environment is preserved. A ruler can not simply make more money and inject into the economy because it will cause inflation.

That is, the inflationary process is directly associated with the amount of money in circulation in the economy. By replacing the new velar currencies, the government is only doing a counterpart transaction, without affecting the monetary base, ie the amount of currency in circulation and held by the banks.

So the third alternative is correct.

trade regulation is a field of law, often bracketed with antitrust (as in the phrase “antitrust and trade regulation law”), including government regulation of unfair methods of competition and unfair or deceptive business acts or practices. antitrust law is often considered a subset of trade regulation law. franchise and distribution law, consumer protection law, and advertising law are sometimes considered parts of trade regulation law.

in general the theory of economics says that the more open to trade a country is the better   the result for the same country and the whole economies.

in real life countries impose taxes, quotas, etc which is not so good for the economies.

this kind of commercial war between the usa and china is slowing down the growth of the whole world so we can say that it is a draw back of trade regulations. and the free trade agreements are benefits of trade regulations.

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