Answer:
The government contracts eliminated price wars by agreeing on common prices and fixed pricing policies.
Explanation:
- The price wars that happen mostly between neighboring countries or two dominant countries in the global economy often lead to the loss of both the parties involved.
- In an attempt to attract more of foreign buyers, some countries choose to intentionally drop the prices of the commodities produced within their domestic boundaries so that they get a trading advantage over the competitor countries.
- But this policy often brings negative outcomes as all the players dealing in the same commodity suffer loss.
