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Domestic products are the GDP of each country, it is indexing the growth of the country. Countries protect their domestic products and producers, it is an integral part of government policy. The intensity of local product protection depend the market, whether it is an ‘Open Market, ‘Restricted’ or ‘Controlled’. Open market policy follows by the capitalists, restricted by most countries having Government controlled market such as Soviet Union and controlled policy by mixed economy which is existing in India. There, private sector is controlled by Government policies and interference.
Local producers are the backbone of the economies; it is inevitable for the sustainability, growth and development of the country. Suppose one day UN decided to implement restrictions over the country such as Iran, Korea, Libya so on… then how you are going to survive?
Local production and producers protection is the part of CSR, to help the SMEs, develop and provide equal opportunities especially in the under developed / developing countries.
This is important for creating employment, social development and economic grow. It is a broad subject, but I have pointed few, finger countable.
Thanks for invitation,
In a very precise wording, countries are usually protecting their domestic producers in order to protect its local industries in general and also, to protect them from the unfair or unsafely competition of "damping processes" used by the foreigner producers.