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 defence.
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

This statement suggests that protectionism is necessary to ensure a country's self-sufficiency in producing goods that are vital to its national security. This argument is often used to justify protectionism in certain industries like defense, energy, and agriculture, where domestic production is seen as critical to a country's survival in times of conflict or crisis. However, experts debate the actual effectiveness of protectionism in achieving this goal, since trade barriers can also harm a country's economy by reducing competition, limiting consumer choice, and creating inefficiencies in production.

Which of the Following Statements Is Used to Justify Protectionism