Question

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

Short answer

Because of protecting sensitive industries and protection against dumping, a low income country can put up barriers to trade.

Step-by-step solution

Step 1. Meaning of trade barriers.

It refers to trade controls that the government imposes on the importation and exportation of goods and services. Various trade barriers include tariffs and quotas. Trade barriers act as a protectionism too.

Step 2. Barriers to trade, such as tariffs on imports are their on low-income country. 

Generally, it is true that country operates without trade barriers results in benefits such as the growth of an economy. However, despite all these benefits a low income country put up barriers to trade, such as tariffs on imports, because of the following reasons:-

a) A low income country placed tariffs on imported goods as a way of protecting sensitive industries, for humanitarian reasons and for protection against dumping.

b) A low income country also imposed tariffs on imported goods to protect an industry that is important for national security.