Question

The arguments for restricting trade Suppose there is a policy debate over imposing trade restrictions on Imported tires In the United States. The debate also focuses on the job outsourcing in the tire industry. A senator from a state with several tire factories explains that it is necessary to impose restrictions against job outsourcing to protect workers in the domestic tire Industry. The senator claims that, without protection against job outsourcing, U.S. companies in the tire industry have incentives to outsource their jobs to developing countries where the labor Is cheaper. This would leave many U.S. workers In the tire industry unemployed. The senator is using the ______ argument to justify the trade restriction on tires.
A. national security
B. employment
C. infant industry
D. cheap foreign labor

Answer 1

Answer:

correct option is A

Explanation:

correct option is A

Core argument often put forward to limit trade as it reduces the demand for jobs available. It's said so, because as the market opens up, all other countries could be more competitive in producing tires and be able to market at a lower price, as a consequence of which domestic consumption for tires would decrease and the firms could decrease their level of production and may lay off workers.