For example if a market in country X were monopolising trade (perhaps due to brand dominance), it would hurt local production in another country Y. So if the citizens of Y, for purposes of curtialing outflow of their BTC to foreign goods, geo-locked some fraction of BTC q, then q would keep local production alive while the bigger percentage of trade capital Q participated in global trade unhinged. It is like the Nationalist idea of coercing local consumption except this would not be an idea implemented from top to bottom, but organically from bottom to top.

The benefits are tremendous. Imagine a BTC price for pizzas hit worldwide due to sanctions / wars, but country Y still has plenty of pizzas to consume at a cheaper price! Without geo-locking, btc-pizza trade metrics on the international scene affect btc-pizza metrics of Y yet in reality there is no need for Y to behave like it has a supply shock. International arbitrarge is not always in everybody's best interests because some are forced to suffer because everybody is suffering. It is also an interesting way for a community as a whole to hodl.

How to un-geolock : Use special GPS locked nodes. BTC sent to that node remain geo-locked for say 1 year. After which un-geo-locking kicks in and they can travel around freely. A multisig arrangement could be the fail safe in case funds are badly needed.