The nations of Tweedle-dee and Tweedle-dum do not trust each other. Tweedle-dee is convinced that if it lowers its trade barriers, Tweedle-dum will not lower its barriers. Therefore, Tweedle-dee keeps its trade barriers high. This is an example of the ________ argument in favor of protectionism.

Question

Quizplus · Accepted Answer

The argument in favor of protectionism being illustrated in this scenario is the threat of retaliation. Tweedle-dee believes that Tweedle-dum will not lower its barriers if it lowers its own, so it keeps its barriers high to protect its domestic industries. This fear of retaliation is a common justification for protectionist policies.

The Nations of Tweedle-Dee and Tweedle-Dum Do Not Trust Each