Because a country does not want to risk being vulnerable to being dependent on imports for something as important as energy, it bans oil and coal imports. As a result, energy is so expensive that homes are cold during the winter and hot during the summer. The rationale for this policy would be most closely related to what argument for trade restriction?

Question

Quizplus · Accepted Answer

The policy of banning oil and coal imports may be driven by the need for national defense, as the country wants to reduce its vulnerability to foreign energy sources. However, this policy has resulted in high costs of energy, which indicates that it is not an effective way of promoting economic welfare. This argument is not related to protecting domestic jobs, protecting infant industries, or protection against dumping.

Because a Country Does Not Want to Risk Being Vulnerable