A protectionist argument that dependence on foreign-produced goods and services should be reduced and that a nation should not become too specialized is based on the principle of:

Question

Quizplus · Accepted Answer

The principle of diversification supports the protectionist argument that a nation should not become overly dependent on foreign-produced goods and services and should avoid becoming too specialized. Diversification emphasizes spreading out investments or economic activities to reduce risk, which aligns with the idea of reducing dependence on external sources and maintaining a broad range of domestic industries.

A Protectionist Argument That Dependence on Foreign-Produced Goods and Services