Final answer:
The government uses tariffs, quotas, and embargos to protect domestic industries, safeguard jobs, for humanitarian reasons, and to prevent dumping. These tools also serve as leverage in international negotiations for reducing trade barriers and to manage the domestic impacts of global trade.
Step-by-step explanation:
The rationale for a government to utilize key instruments such as tariffs, quotas, and embargos to manage trade is multifaceted. Tariffs are taxes placed on imported goods often used to protect domestic industries from foreign competition and can also serve humanitarian purposes or prevent dumping, which is the selling of goods below market value to undermine local businesses. Quotas, which are numerical limits on how much of a product can be imported, also safeguard domestic industries. For example, the Reagan Administration used quotas in the 1980s to limit Japanese automobile imports, preserving domestic automotive jobs. Furthermore, embargos are complete bans on trade with certain countries for political or humanitarian reasons.
These trade barriers can be beneficial to domestic economies by safeguarding jobs, allowing fledgling industries to develop without intense foreign competition, and protecting the safety and welfare of citizens. Instruments like tariffs and quotas may also serve as leverage in international negotiations, such as those under the World Trade Organization (WTO), to reduce trade barriers globally. While international trade brings significant benefits, especially to smaller countries, trade management tools help balance the domestic impacts of global market forces.