Government Policies

Political arguments for government intervention include:
 protecting jobs
 protecting industries deemed important for national security
 retaliating to unfair foreign competition
 protecting consumers from “dangerous” products
 furthering the goals of foreign policy
 protecting the human rights of individuals in exporting countries

protecting jobs
 Protecting jobs and industries is the most common political reason for trade restrictions  

 Usually this results from political pressures by unions or industries that are "threatened" by more efficient foreign producers.   These unions and industries usually have more political influence with which to pressure governments. The consumer that will always eventually pay extra of the product.
protecting industries deemed important for national security
 Industries such as aerospace or electronics are often protected because they are deemed important for national security
retaliating to unfair foreign competition
 When governments take, or threaten to take, specific actions, other countries may impose trade barriers

 If threatened governments don‘t back down, tensions can escalate and new trade barriers may be created
 This will result in extra cost to the consumer
protecting consumers from “dangerous” products
 Governments may intervene in markets to protect consumers from “faulty” or “dangerous” goods from other countries.

Sometimes such intervention is good for health or safety reasons, but often local pressure groups will cause the government to change “safety” laws and force a foreign producer to change their product design.   This may be uneconomical for the producer and so the product is forced off the market.   If the product after changing is still imported, then the consumer pays more and the local producer benefits.
furthering the goals of foreign policy
 Foreign policy objectives can be supported through trade policy

 Preferential trade terms can be granted to...