Suppose a tire company has been experiencing a steady loss of market over the past 40 years due to imports of lower-priced tires.Which argument would the company most likely present to government when it lobbies for trade restrictions?

Question

Quizplus · Accepted Answer

The declining industry argument would be the most suitable for the tire company in this situation because it has been experiencing a steady loss of market over the past 40 years. This argument would emphasize the negative impact of imports on the domestic industry and may request trade restrictions to protect the domestic market. The infant industry argument is not appropriate as the industry has been in existence for 40 years, and the national defense and antidumping arguments do not apply to this situation.

Suppose a Tire Company Has Been Experiencing a Steady Loss