Why do countries provide financial incentives?

Financial incentives act as trade barriers.

Financial incentives limit imports.

Financial incentives set standards.

Financial incentives restrict all trade.

Countries provide financial incentives to act as trade barriers. Trade barriers are government-initiated restrictions on trade. This includes some sort of cost being imposed on the traded product, so as to increase its cost. Financial incentives given to domestic producers encourages local trade, thereby, discouraging traders from having to look outside the country for trade.