One of the reasons why government may erect a trade barrier is to

Assessment: WAEC SSCE - Economics - 2012 (Objective) Subject: Economics

Question 1 Report

One of the reasons why government may erect a trade barrier is to

Answer Details
One of the reasons why the government may erect a trade barrier is to protect infant industries. A trade barrier is a government-imposed restriction on international trade, and it can take many forms, including tariffs, quotas, and embargoes. The purpose of trade barriers is to protect domestic industries from foreign competition. One of the arguments in favor of trade barriers is that they can protect infant industries, which are new or emerging industries that may not be able to compete with more established foreign industries. By erecting trade barriers, the government can protect these industries until they are strong enough to compete on their own.

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