Instead of placing a tariff on the imports of steel, a government has decided to offer steel workers trade adjustment assistance which will allow them to pre-qualify for unemployment benefits. Such a policy is consistent with:
A)the dying industry argument.
B)the specificity rule.
C)the infant industry argument.
D)the national pride argument.

Question

Quizplus · Accepted Answer

The specificity rule is the principle that government should provide assistance to industries or workers negatively affected by trade, rather than imposing broad-based trade barriers. Providing trade adjustment assistance to steel workers is consistent with the specificity rule, as it targets the specific group that is negatively impacted by imports of steel, rather than imposing blanket tariffs on all steel imports.

Instead of Placing a Tariff on the Imports of Steel