Randall Smithe-Jones believes that protectionism is the only way to save the United Kingdom from outside competitors. He has seen small businesses go bankrupt because cheaper foreign goods have been more popular. The cell-phone manufacturing industry has just started in U.K and Smithe-Jones' company is one of the first to try its hand at cell-phone manufacturing. Which of the following would probably be the argument that Smithe-Jones would use to persuade his government representatives that protectionism is still needed in the U.K.?
A) Protection of an infant industry.
B) The need to keep money at home.
C) Conservation of natural resources.
D) National defense.
E) Maintenance of standard of living.

Question

Quizplus · Accepted Answer

The case tells us that cell-phone manufacturing is a nascent industry in the United Kingdom. Protecting this infant industry would be the most probable reason for seeking protection from foreign competition.

Randall Smithe-Jones Believes That Protectionism Is the Only Way to Save