Rishi, a protectionist, has seen several small businesses go bankrupt because they were unable to compete with the cheaper prices of goods provided by foreign companies. The cell-phone manufacturing industry has just started in the United Kingdom, and Rishi's company is one of the first to try its hand at cell-phone manufacturing. What argument is most likely to be used by Rishi to persuade his government to restrict the import of foreign cell phones from foreign companies?
A) protection of an infant industry
B) the need to keep money at home
C) conservation of natural resources
D) national defense
E) maintenance of standard of living

Question

Quizplus · Accepted Answer

Rishi is likely to argue for the protection of an infant industry to persuade his government to restrict the import of foreign cell phones, as his company is one of the first in the UK to start cell-phone manufacturing and needs protection to grow and compete with established foreign companies.

Rishi, a Protectionist, Has Seen Several Small Businesses Go Bankrupt