What Is an Example of a Trade Restriction?

What Is an Example of a Trade Restriction?

What Is an Example of a Trade Restriction?

Some examples of trade restrictions include tariffs, quotas and subsidies. Such restrictions serve economic and political purposes, but often have consequences as well.

Tariffs help protect domestic industries and workers from foreign competition, which helps keep products and jobs within a country's borders. However, the cost for doing so means that the price of goods must go up to meet the demand for product and labor, and taxpayers are the ones who front that cost. Another concern of trade restrictions is that although tariffs and subsidies help protect domestic industries and workers, it discourages the protected from making changes that would make those industries competitive with foreign markets without government assistance.