Question

What is one potential benefit of establishing trade barriers?

Answer 1

Trade barriers protect domestic industry and jobs. Workers in export industries benefit from trade. Moreover, all workers are consumers and benefit from the expanded market choices and lower prices that trade brings.

Answer 2

Trade barriers can limit their ability to export products, leading to loss of revenue and decreased profit. On a larger scale, trade barriers affect economic growth. For example, in developing countries which are unable to export goods because of high tariffs, trade barriers can limit their ability to prosper and expand their operations.