What is the primary purpose of trade restrictions?
Answer:
I can think of at least three reasons:
1. Protect an industry or a resource for national security reasons -- food supply, for example.
2. Generate governemnt revenue through import and export duties.
3. Protect an industry that is in an early stage of development, and cannot yet compete in world markets.
This may help u
http://en.wikipedia.org/wiki/trade_restr...
Though trade restrictions are usually justified as fulfilling some desirable social or economic objective, they usually exist simply to enrich a particular interest group, for example farmers and local manufacturers. These groups do not want to face competition from foreign producers. Tariffs allow local producers to sell low quality products at high prices without fear of losing their customers to better quality and lower cost imported products.
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