Suppose an established domestic industry is in jeopardy of being displaced by lower-priced imports.Which type of import restrictions should be imposed?

Question

Quizplus · Accepted Answer

Imposing temporary import restrictions would provide the domestic industry with time to adjust to the competition posed by lower-priced imports while not necessarily disrupting the benefits of free trade in the long term. Permanent import restrictions would stifle potential competition and could lead to retaliation from other countries, while the infant industry argument may not necessarily apply to an established domestic industry. Therefore, temporary import restrictions would be the best course of action in this scenario.

Suppose an Established Domestic Industry Is in Jeopardy of Being