What is one effect of trade barriers on economic geography?

One primary effect of trade barriers on economic geography is that they tend to reduce competition in markets. When trade barriers, such as tariffs or quotas, are implemented, the flow of goods and services between countries is restricted. This limitation can prevent foreign competitors from entering a domestic market, allowing domestic businesses to maintain a significant market share without the pressure of competing against potentially cheaper or higher-quality imports.

As a result, local companies might not feel the need to innovate or improve their products and services due to the reduced competition. This can lead to a stagnation in economic development within certain sectors because firms do not have to adapt to changing market demands as vigorously as they would in a more competitive environment. Therefore, the presence of trade barriers significantly influences the economic geography by creating protected markets where fewer players dominate, ultimately affecting pricing, consumer choice, and the overall efficiency of resource allocation within those regions.