Below is a graph illustrating the market for mustard seeds in Rysen III.(Sd is domestic supply,and Dd is domestic demand. ).The world price of mustard seeds is $100.

-What is meant by the strategic-industry argument?

Question

Below is a graph illustrating the market for mustard seeds in Rysen III.(Sd is domestic supply,and Dd is domestic demand. ).The world price of mustard seeds is $100.
 
-What is meant by the strategic-industry argument?

Quizplus · Accepted Answer

The strategic-industry argument suggests that a country should protect its strategic industries from foreign competition. In this case, if mustard seeds are considered a strategic industry for Rysen III, the country may choose to impose tariffs on imported mustard seeds to protect their domestic industry.

Below Is a Graph Illustrating the Market for Mustard Seeds