Chapter 20: Q 27. (page 494)

Why might a low-income country put up barriers
to trade, such as tariffs on imports?

Short Answer

Expert verified

Because of various reasons they want to increase trade barriers.

Step by step solution

Step 1. Definition

Trade barriers are defined as the protectionist form of trade that is put by the governments to have a limited trade between various nations and economies.

Step 2. Explanation

A low-income country put up barriers to trade, such as tariffs on imports because of the various reasons which are listed below:

a) they don’t want that their domestic firms will hurt by the other countries that is why they prevent foreign firms from throwing their huge number of goods at cheap rates in their country.

b) they want to protect their small firms or startups from big foreign giants which are already established.

c) they want to prevent their economy from unemployment because then their people favor foreign products

Unlock Step-by-Step Solutions & Ace Your Exams!

Full Textbook Solutions
Get detailed explanations and key concepts
Unlimited Al creation
Al flashcards, explanations, exams and more...
Ads-free access
To over 500 millions flashcards
Money-back guarantee
We refund you if you fail your exam.

Start your free trial

Over 30 million students worldwide already upgrade their learning with Vaia!

Why might a low-income country put up barriers
to trade, such as tariffs on imports?

Short Answer

Step by step solution

Step 1. Definition

Step 2. Explanation

One App. One Place for Learning.

Most popular questions from this chapter

Study anywhere. Anytime. Across all devices.

Why might a low-income country put up barriersto trade, such as tariffs on imports?

Short Answer

Step by step solution

Step 1. Definition

Step 2. Explanation

One App. One Place for Learning.

Most popular questions from this chapter

Study anywhere. Anytime. Across all devices.

Why might a low-income country put up barriers
to trade, such as tariffs on imports?