What is the primary purpose of trade barriers?

The primary purpose of trade barriers is to protect domestic producers. Trade barriers, such as tariffs, quotas, and import licensing, are implemented by governments to restrict foreign competition, thereby favoring local businesses. This protection allows domestic industries to thrive by making imported goods more expensive or limiting their availability.

When domestic producers face less competition from foreign entities, they can maintain higher prices and potentially increase their sales volumes. This is especially crucial in industries that may struggle to compete with cheaper or more advanced foreign products. By safeguarding local jobs and businesses, trade barriers can help stimulate the domestic economy, even if they may lead to higher prices for consumers.

The incorrect options highlight contrasting objectives. Promoting free trade among nations contradicts the very nature of trade barriers, as such measures are designed to limit trade, not facilitate it. Enhancing international competition would also not align with the purpose of barriers, as their implementation typically reduces competition by hindering foreign firms' market access. Lastly, eliminating tariffs on imports directly opposes the protective function of trade barriers, which aim to impose those very tariffs to shield domestic industries.