Governments place trade barriers on international trade as a way to safeguard their home industry from foreign competition. These obstacles might come in a variety of shapes, including tariffs, quotas, and subsidies. This article examines the benefits of government-imposed trade restrictions as well as any potential negative effects of their implementation.
Government-imposed trade restrictions are essential for safeguarding particular industries from international rivalry, fostering domestic innovation, and maintaining jobs. However, putting these restrictions into place can sometimes have negative effects like retaliation from trading partners, higher pricing for consumers, and economic inefficiency. To guarantee that they achieve their intended goals while avoiding any negative effects on the larger economy, governments must carefully evaluate the possible advantages and costs of trade barriers before enacting them.