The basic concept behind strategic trade policy is that free trade is the best policy to pursue, but some countries don't play by those rules.Therefore,
A)it makes no sense to engage in trade at all, and it makes sense to be self-sufficient.
B)it makes sense to restrict imports of items that are of military significance in order to maintain a strong defense posture.
C)it makes sense to threaten to protect markets unless other nations agree to open theirs.
D)it makes no sense to export items of strategic importance to other nations, because they should make them on their own.

Question

Quizplus · Accepted Answer

Strategic trade policy suggests that if other countries are not playing fair in trade, a country can use strategic measures to ensure a competitive advantage for their own industries. One such measure is threatening to protect markets unless other nations agree to open theirs, which is the rationale behind choice C. This can be achieved through a variety of methods, such as tariffs or subsidies, to ensure that domestic producers can compete with foreign ones on a level playing field. Therefore, C is the correct choice.

The Basic Concept Behind Strategic Trade Policy Is That Free