Randall, a protectionist, has seen several small businesses go bankrupt because they were unable to compete with the cheaper prices of goods provided by foreign companies. The cell-phone manufacturing industry has just started in the United Kingdom, and Randall's company is one of the first to try its hand at cell-phone manufacturing. Which of the following arguments is most likely to be used by Randall to persuade his government to restrict the import of foreign cell phones from foreign companies?
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, a Protectionist, Has Seen Several Small Businesses Go Bankrupt