Final answer:
Trade barriers are typically not a rationale for fair competition; they protect domestic industries, possibly at the expense of economic growth and efficiency. Governments impose them for various reasons, including job protection and national security. International agreements help reduce trade barriers and foster global trade.
Step-by-step explanation:
The assertion that fair competition is a strong rationale for trade barriers is generally considered false. Trade barriers, such as tariffs and quotas, are designed to protect domestic industries from foreign competition. They can increase prices for consumers and disrupt the market's ability to naturally regulate supply, demand, and prices. Trade barriers can reduce international economic growth by limiting market access for firms and increasing costs for consumers.
Nations may choose to impose trade barriers for several reasons. These include protecting domestic jobs, preserving national security, protecting infant industries, and responding to unfair trade practices by other nations. Trade barriers can have the unintended effect of hurting the average worker in the economy through higher prices and less efficient markets. Governments sometimes create trade barriers as a political compromise or to protect certain industries that are viewed as critical to the nation's interests or vulnerable to external competition.
International agreements can help counteract these protectionist impulses and promote fair competition by setting rules that all signatory nations agree to follow, reducing trade barriers and allowing for increased global trade and economic growth.