Why are the trade barriers imposed on the foreign trade and investment in the country
Answers
They are imposed so that the country people can set up there own business before competing with the international market.
For example: the Indian govt have put trade barriers after Independence so that the producers can get settled and start earning in there own country. after few years the trade barriers were removed so that they can face the international competition and provide better quality and quantity of the goods.
1) To regulate foreign trade.
2) To decide what kinds of goods and how much, should come into the country.
3) To give protection to the domestic producers of the country.
In case of India:
After independence, Indian govt. had to put trade barriers on foreign investment.
1) To protect the producers within the country from foreign competition.
2) In 1950s and 1960s, industries in India were just coming up and competition from imports at that stage wouldnnot have allowed these industries to come up.
3) Only essential goods were allowed to be imported.