Which of the following is an argument that is used for protection from free trade?
i.the national security argument
ii.the infant-industry argument
iii.the dumping argument
A) i only
B) ii only
C) iii only
D) i and iii
E) i, ii, and iii

Question

Quizplus · Accepted Answer

All three arguments are commonly used to justify protection from free trade. The national security argument suggests that certain industries are vital for national defense and should be protected from foreign competition. The infant-industry argument holds that new industries need temporary protection until they become established and can compete internationally. The dumping argument is used when a country's producers sell goods abroad at a price lower than their domestic market or below their cost of production, harming domestic industries, which justifies protective measures.

Which of the Following Is an Argument That Is Used