Question

Suppose there is a policy debate over whether the United States should impose trade restrictions on imported ball bearings:________.
Domestic producers of ball bearings send a lobbyist to the U.S. government to request that the government impose trade restrictions on imports of ball bearings. The lobbyist claims that the U.S. ball-bearing industry is new and cannot currently compete with foreign firms. However, if trade restrictions were temporarily imposed on ball bearings, the domestic ball-bearing industry could mature and adjust and would eventually be able to compete in the world market.
Which of the following justifications is the lobbyist using to argue for the trade restriction on ball bearings?
A. Infant-industry argument
B. Saving-domestic-jobs argument
C. Using-protection-as-a-bargaining-chip argument
D. National-security argument
E. Unfair-competition argument

Answer 1

Answer:

A)Infant-industry argument

Explanation:

We are informed about a Supposed policy debate over whether the United States should impose trade restrictions on imported ball bearings. Whereby

Domestic producers of ball bearings send a lobbyist to the U.S. government to request that the government impose trade restrictions on imports of ball bearings.

In the case whereby, The lobbyist claims that the U.S. ball-bearing industry is new and cannot currently compete with foreign firms, the justifications the lobbyist was using to argue for the trade restriction on ball bearings is Infant-industry argument.

Infant-industry argument can be regarded as an economic rationale that provides protection for new industries that are yet to reach a certain economic scale like the existing industries, this theory offer protection to this new/developing industry from some form pressure as well as their products that can emerge from compitition from other mature industries.