Question

Why do low-income countries like Brazil, Egypt, or Vietnam have lower environmental standards than high-income countries like the Germany, Japan, or the United States?

Short answer

To attract foreign businesses.

Step-by-step solution

Step 1. Introduction

Different arguments are given to justify the imposition of trade barriers. Environmental protection is one such argument. Though it has been noted that high-income countries have stronger environmental standards than low-income and middle-income countries.

Step 2. Explanation

Low-income countries are more focused on meeting their immediate needs such as food supply, healthcare facilities, longer life expectancies, etc. For them, environmental standards are a luxury that they cannot afford currently. They would focus on environmental protection measures once their necessities are met. They may also keep environmental standards lower to attract foreign businesses.