Question

If trade barriers hurt the average worker in an economy (due to lower wages), why does the government create trade barriers?

Short answer

Government creates trade barriers because:

1. Environmental protection.
2. The tariffs protect the same industry in the home country.
3. To save local people and jobs in the country.

Step-by-step solution

Step 1. Meaning of trade barrier.

Trade barriers are methods taken into account to prevent exploitation of the home country.

Step 2. Reason for government to create trade barriers,

Government creates trade barriers because:

1. Environmental protection - Environment is an important concern The protection of the environment is essential for its betterment and growth. If there is no protection, then the profit-making firms will exploit the countries.
2. The tariffs protect the same industry in the home country. The motive is to make the import expensive so, that the money is kept inside the country.
3. To save local people and jobs in the country. Competition from foreign trade can harm domestic business causing local workers to lose their jobs.