What is the dumping argument for protection from international trade?
A) Foreigners selling products in the economy limit the nation's diversity and stability.
B) Foreign producers selling below cost to drive domestic firms bankrupt must be stopped.
C) Any firm necessary in wartime must be protected.
D) Domestic jobs must be protected from competition from low-paid foreign workers.
E) Domestic firms must be protected until they gain a comparative advantage.

Question

Quizplus · Accepted Answer

The dumping argument for protection from international trade is that foreign producers sell below cost to drive domestic firms out of business. This argument suggests that protectionist measures such as tariffs, quotas, and subsidies are necessary to prevent unfair competition and ensure the survival of domestic industries. However, this argument is controversial and has been criticized for promoting inefficient industries, reducing consumer choice, and harming international relations.

What Is the Dumping Argument for Protection from International Trade