Which of the following is not an argument for trade restrictions?
A) the national defense argument
B) the infant industry argument
C) the comparative advantage argument
D) the antidumping argument

Question

Quizplus · Accepted Answer

The comparative advantage argument is actually an argument for free trade, as it highlights the importance of countries specializing in producing and exporting the goods and services in which they have a comparative advantage, while importing goods and services in which other countries have a comparative advantage. The national defense argument argues that trade restrictions may be necessary to protect vital industries related to national security, while the infant industry argument contends that temporary trade restrictions may be needed to help new industries get established and compete globally. The antidumping argument suggests that trade restrictions may be needed to prevent foreign companies from selling goods at unfairly low prices to drive domestic producers out of business.

Which of the Following Is Not an Argument for Trade