The United States produces some of the electronic components used as inputs in its fighter planes. But due to the limited number of companies that produce these items, it is forced to import these parts from Japan as well. There is concern that in the case of a prolonged war, these important imports may not be available. Fearing that the air force may be unable to fulfill its tasks in the case of a prolonged war, the specificity rule suggests that the United States should:
A)ban the importation of these electronics parts in order to protect jobs in this industry.
B)impose tariffs on the imports of these electronic parts.
C)subsidize the domestic production of these electronics parts.
D)impose high taxes on the production of these electronic parts.

Question

Quizplus · Accepted Answer

The specificity rule suggests that the best course of action is to subsidize the domestic production of these electronics parts in order to ensure their availability in the case of a prolonged war. This would also reduce the country's reliance on imports and increase its self-sufficiency in this important industry. Imposing tariffs or banning imports could lead to retaliation from Japan and result in higher prices for American consumers. High taxes on production would also not be effective in addressing the problem of import dependency.

The United States Produces Some of the Electronic Components Used