Why might a country limit its openness to trade?

A country might limit its openness to trade primarily to protect local industries for several reasons. When a nation imposes trade restrictions, such as tariffs or quotas, it aims to shield its domestic producers from foreign competition. This protection can be vital for emerging industries or those that struggle to compete against more established foreign companies with advantages such as cheaper labor or more advanced technology.

By limiting imports, local businesses may retain market share, which can support job preservation and potentially foster development in strategic sectors critical to the national economy. In this way, the country can nurture its industries until they become competitive on a global scale. Additionally, protecting local industries can help maintain cultural values and economic independence.

The other options do not appropriately capture the primary motivations behind limiting trade. For instance, increasing exports typically involves promoting openness rather than restricting it. Enhancing foreign relations might sometimes require reducing trade barriers, and decreasing domestic prices usually results from competition from imports rather than from limiting trade.