Why do countries impose restrictions on international trade?
Explanation
Countries impose restrictions on international trade for the following reasons:
(i) to protect their newly established industries against foreign competition.
(ii) to encourage the establishment of industries which will provide employment for their citizenry.
(iii) to prevent the dumping of cheap foreign goods in the country.
(iv) to retaliate against similar measures imposed by other nations.
(v) When a country has an Unfavourable balance of trade, it may use tariffs to discourage further importation of goods.
(vi) Imposition of tariffs on imported goods is a source of revenue for the government.
(vii) Dangerous goods from other countries are prevented from being imported through restriction.
(viii) Those industries that produce arms and ammunitions that are essential to national survival must always be protected from competition with similar industries from advanced countries.