Which of the following statements is used to justify protectionism?
A)Free trade leads to higher prices for imported goods.
B)Free trade increases employment by protecting domestic firms.
C)A country should not rely on other countries for goods that are critical to its national defense.
D)Trade restrictions are not necessary to protect new firms since they can gain experience and become more productive without protection.

Question

Quizplus · Accepted Answer

The statement "A country should not rely on other countries for goods that are critical to its national defense" is often used to justify protectionism, as countries may want to ensure that they have control over the production of critical goods in case of national emergencies or conflicts. This can involve implementing trade barriers or investing in domestic industries to ensure self-sufficiency in production.

Which of the Following Statements Is Used to Justify Protectionism